LOS ANGELES, Jan. 30 (Chinese media) -- New vehicles sales in California, which is the largest auto market in the United States, plunged to a 15 year low last year as the U.S. economic recession keeps stalling consumer spending, according to a latest trade report.
As measured by vehicle registrations, California's dealers sold1.45 million cars and trucks in 2008, representing a 23 percent drop, compared with the 18 percent decline across the country, the California New Car Dealers Association said in its annual report.
The association's report released on Thursday showed that the severe financial market crisis, global economic slowdown and an increasing unemployment rate had stymied an auto sales rebound last year.
New car sales began falling in late 2007 in California, and showed a year-over-year drop of 19 percent through the first nine months of 2008, before the drop-off plunged to 30 percent during the last three months of the year, according to the report.
Peter Welch, the association's president, said that car dealers business has entered an uncharted territory as there were no signs when the sales slide will end.
If the current economic climate persists, sales could fall an additional 15 percent this year, he said, adding that at least 132California dealerships closed or consolidated last year, with 12 more falling victim this month.
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