Auto sales in America dip overall in August

DETROIT - Auto sales, once a bright spot in the economic recovery, grew fainter last month.

The pain was widespread. Big car companies General Motors Co., Ford Motor Co., and Toyota Motor Corp. all saw sales slip. Smaller automakers such as Subaru suffered too, as did companies that appeal to the budget-minded, such as Kia Motors Corp. and Hyundai Motor Corp.

But Chrysler Group LLC, which makes three vehicles in Toledo, had a 7 percent increase in sales last month compared to a year ago. Chrysler's increase, and the other automakers' decreases, were partly because of the government's "Cash for Clunkers" program a year ago that had a financial incentive for people to trade vehicles with poor mileage to buy new ones with good mileage.

That boosted sales a year ago for many car makers, but Chrysler did not experience much benefit from the program.

Last month, buyers stayed nervous about the economy and stayed away from showrooms, a worrisome sign since August is typically a strong month.

"There hasn't been enough horsepower behind the recovery to motivate consumers to regain their confidence and purchase vehicles at a higher rate," said Jeff Schuster, executive director of global forecasting for J.D. Power and Associates.

Car buyers are also struggling to find bargains. Most automakers are making money at lower sales levels because they've cut production. They no longer need to offer cars at below break-even prices just to move them off lots. The average discount per vehicle fell 3 percent in August to $2,681 per vehicle, according to auto research Web site Edmunds.com.

Ford is responding to weaker demand by slowing production in the fourth quarter. The Dearborn, Mich.-based company will make 570,000 cars and trucks, down from 574,000 in 2009.

GM's August sales fell 7 percent from July, and an even sharper 25 percent from August, 2009, when they were boosted by the Cash for Clunkers rebates.

Ford saw sales slip 5 percent from July, while Toyota's fell 12 percent.

Subaru sales dipped 7.2 percent. Kia's fell 8 percent, and Hyundai's were flat. Honda Motor Co. sales fell 33 percent last month, and Nissan Motor Co. sales dropped 27 percent.

Sales of Chrysler's Toledo-built Jeep Wrangler were up 37 percent from a year ago to 7,666 units; Jeep Liberty up 56 percent to 5,247 units, and Dodge Nitro up 66 percent to 2,505, the firm said.

•Honda Motor Co. sales fell 33 percent because of weaker demand for small cars such as the Accord, the Civic, and the Fit. Sales fell 3 percent from July.

•Nissan Motor Co. sales fell 27 percent on sharply lower sales of its sedans. Compared with July, sales fell 7 percent.