(CEP News) - U.S. auto sales plunged for yet another month in February despite aggressive efforts to offer low-interest financing and reduced prices. The beleaguered U.S. automotive sector is struggling to stay afloat.

Total auto sales were 9.1 million in February, against expectations for 9.4 million car sales and 9.6 million cars sold in January.

Meanwhile, domestic vehicle sales were 6.4 million, below forecasts for 6.8 million cars sold and against 6.9 million sold in January.

U.S. auto giants Ford, Chrysler and GM saw another terrible month.

GM sales fell 53% annually, while Ford’s sales were down 48 percent. Chrysler saw sales fall 44 percent.

The declines come as both GM and Chrysler scramble to come up with a plan to revive their businesses in order to keep $17.4 billion in loans from the U.S. government, and receive $21.6 billion more.

If the companies cannot come up with a sufficient deal with President Barack Obama’s auto task force by March 31, they could be forced into bankruptcy.

As for foreign auto companies, Toyota sales in the U.S. fell by 40 percent. Honda was down 38 percent and Nissan fell 37 percent.

BMW sales fell by 34.7 percent year over year, and South Korean automaker Hyundai saw sales fall by a comparatively meager 1.5%.

Very few automakers saw an increase in car sales. Subaru of America sales grew a measly 1%, while Kia Motor Corp.’s sale were flat from a year earlier.

By Megan Ainscow, mainscow@economicnews.ca

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Posted in Categories: Australia, Auto, Economy, Releases, USA.

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