Global auto slowdown may add to carmaker woes

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Detroit, October 3: : clients.

US industry wide auto sales plunged 26 per cent in September, dashing any hope that demand had touched bottom in August when automakers reported a sales improvement over July.

Every major automaker posted sales declines in September, including a surprising 32 per cent drop for Toyota Motor Corp, its steepest since 1987.

And the adjusted annual rate of sales, a key figure watched by economists, bumped along at a 15-year low.

"Hope that August's sequential recovery was the beginning of a developing bottom in monthly auto sales would now seem misplaced," Patel said.

Auto executives have called the proposed $700 billion financial sector bailout critical to allaying consumer fears and freeing up credit markets. But it remains to be seen how long it would take for the freeze to thaw.

Barclays Capital Plc analyst Shannon O'Callaghan said the credit crunch is likely to be deeper and more sustained than previously thought, regardless of the legislative outcomes.

As a result, already weak markets such as autos and housing are expected to get worse, O'Callaghan said.

Samir Salman, chief executive of auto parts supplier Continental AG in North America said it is unclear if the US market has hit bottom.