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| US car firms report sales slump | US car firms report sales slump |
| (about 1 hour later) | |
| Ford, General Motors (GM) and Chrysler have all reported a sharp fall in US sales in January, as industry-wide American sales fell to a 27-year low. | Ford, General Motors (GM) and Chrysler have all reported a sharp fall in US sales in January, as industry-wide American sales fell to a 27-year low. |
| Sales at Ford plunged 42% last month, compared with a year earlier, while those at GM declined 49%, and Chrysler was hit by a fall of 55%. | Sales at Ford plunged 42% last month, compared with a year earlier, while those at GM declined 49%, and Chrysler was hit by a fall of 55%. |
| GM and Chrysler needed a $17.4bn (£12bn) rescue package from the US government in December. | GM and Chrysler needed a $17.4bn (£12bn) rescue package from the US government in December. |
| While Ford last week reported a record $14.6bn annual loss for 2008. | While Ford last week reported a record $14.6bn annual loss for 2008. |
| 'Monster' | 'Monster' |
| American car sales have slumped as consumers have cut back on making large purchases as the US recession has deepened. | American car sales have slumped as consumers have cut back on making large purchases as the US recession has deepened. |
| US consumers have cut back on buying new cars | US consumers have cut back on buying new cars |
| "We're in the mouth of this monster, and we have a lot of work to do," said Chrysler sales chief Steven Landry. | "We're in the mouth of this monster, and we have a lot of work to do," said Chrysler sales chief Steven Landry. |
| Chrysler argues that more customers would like to buy new cars, only they can't secure the loans to do so, because of the continuing problems in the US banking sector. | Chrysler argues that more customers would like to buy new cars, only they can't secure the loans to do so, because of the continuing problems in the US banking sector. |
| January's decline has also hit sales of foreign cars in the US. Toyota's January American sales were down 32% from a year earlier, while those at Nissan dropped 30%. | January's decline has also hit sales of foreign cars in the US. Toyota's January American sales were down 32% from a year earlier, while those at Nissan dropped 30%. |
| "The truth is that the entire auto industry finds itself in the eye of this economic storm," said Toyota US executive Bob Carter. | "The truth is that the entire auto industry finds itself in the eye of this economic storm," said Toyota US executive Bob Carter. |
| However, both Subaru and Hyundai bucked the trend, with their January US sales rising 8% and 14%. | However, both Subaru and Hyundai bucked the trend, with their January US sales rising 8% and 14%. |
| Government support | Government support |
| GM and Chrysler gained their bail-out from the White House last month after they warned that they were running out of cash. | GM and Chrysler gained their bail-out from the White House last month after they warned that they were running out of cash. |
| The financial situation at Ford is not as bad, although it has secured a $9bn government credit line that it will be able to access in the future if needed. | The financial situation at Ford is not as bad, although it has secured a $9bn government credit line that it will be able to access in the future if needed. |
| GM said on Tuesday that it would offer voluntary redundancy to 22,000 US employees as it seeks to cut costs. | GM said on Tuesday that it would offer voluntary redundancy to 22,000 US employees as it seeks to cut costs. |
| Industry-wide US car sales fell 18% in 2008 to 13.2 million vehicles. | |
| Sales for 2009 are expected to drop near 10.5 million, analysts say. | Sales for 2009 are expected to drop near 10.5 million, analysts say. |
| "Even with a boost from the anticipated federal stimulus plan, we see consumers taking a cautious approach to large ticket discretionary purchases," said S&P equity analyst Efraim Levy. | "Even with a boost from the anticipated federal stimulus plan, we see consumers taking a cautious approach to large ticket discretionary purchases," said S&P equity analyst Efraim Levy. |