Both “Government Motors” and Ford Motor Company saw their August sales decline by seven percent from the previous month, although Ford’s decline was predominantly due to the fact that it is no longer counting sales of Volvo automobiles.
Chinese automaker Geely purchased Volvo from Ford last month for $1.8 billion.
Meanwhile, GM has shed its Saturn, Pontiac and Hummer brands.
The losses – which were also felt by Japanese automakers Toyota and Honda – were part of the worst August for the auto industry in nearly three decades. Deliveries were down by 5 percent from July – and down 21 percent from the previous year.
Auto sales were artificially-high last year due to the government’s “Cash for Clunkers” program, which offered government rebates of $3,500 or $4,500 to consumers who purchased more energy efficient vehicles. That program cost taxpayers $3 billion.
As part of an automotive bailout spanning the administrations of both George W. Bush and Barack Obama, more than $60 billion in taxpayer money has been dumped into GM and Chrysler since December 2008.
Analysts attributed low consumer confidence as the primary reason for declining sales, although they said Labor Day bargains could lure consumers into showrooms again during September.
