General Motors Corp. (NYSE: GM), Ford Motor Co. (NYSE: F) and all the other foreign and domestic automakers witnessed a 37% drop in U.S. auto sales in March compared to the year-ago period. The good news: that was a better-than-expected decline. When a 37% decline is considered good, there's the sign of a deeply-troubled economy (as if we didn't all know that already).Desperate for sales, automakers tried anything to get consumers on dealer lots. A few incentives launched in late March by GM and Ford took a page from other industries: the automakers offered to pony up $500 (GM) or $700 (Ford) in monthly payments for over half a year should a new auto owner lose his job. After the annual auto sales rate in February dropped to a 27-year low, some drastic measures had to be taken.
Is any type of recovery in the works for the auto industry? Right now, the real estate world is abuzz with the recent $8,000 federal tax credit given to first-time home buyers, and mortgage re-financings are increasing due to incredibly low rates on fixed mortgages. Are automakers in for some kind of sales buoyancy soon as consumers start spending again? If it happens in 2009, most of us would be extra-surprised. I know I would.
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