US Auto sales took a sharp downward turn in September in the face of an ongoing credit crisis and the continued increase in fuel prices. Industry-wide sales plunged below the 1 million mark for the first time in more than 15 years. Overall industry sales were at 964,873 vehicles, the lowest level seen since February 1993. The 27% drop was sharper than expected and is a clear sign that tighter credit and falling consumer confidence is hurting consumer spending.

“This is the worst point we have seen in 15 years,” said Jesse Toprak, head of industry analysis for the automotive Web site Edmunds.com. “And it is likely to be even worse in the month of October.” Mr. Tropak also said that a sale for the entire year is projected to be about 14 million vehicles, the lowest figure in more than a decade.

The slide was led by Ford whose sales were down by 34%. Asian automakers weren’t spared with an overall 31% drop. Sales were down 24% for Honda Motor Corp., 32% for Toyota Motor Corp. and 37% for Nissan Motor Co. Chrysler registered a drop of 33%. Beating forecasts, General Motors had only a 15.6% drop in sales buoyed by employee pricing deals offered to consumers and an increase in sales to rental-car fleets.

Source: The Auto Channel