Ford sales plunge
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NEW YORK -- Sales at Ford Motor Co. plunged in September as lower
gasoline prices were not enough to overcome tighter credit for buyers
and dealers during the month.

Ford (F, Fortune 500) reported that U.S. sales tumbled 35% from a year
earlier. Sales tracker Edmunds.com had forecast a 25% drop in sales in
the period.

Overall industry sales are expected to fall 20% from year-ago levels.
Experts said many consumers were apparently reluctant to make big ticket
purchases at a time of economic upheaval.

And for those who wanted to buy a car, some were unable to get a loan as
the credit markets tightened during the mounting crisis on Wall Street.

In addition to auto loans being more difficult to get, a growing number
of dealerships also have been hit by the credit crunch and have found it
increasingly difficult to get the cash they need to do business.

"Consumers and businesses are in a very fragile place," said Jim Farley,
Ford group vice president. "An already weak economy compounded by very
tight credit conditions has created an atmosphere of caution."

The other automakers are due to report later in the day. General Motors
(GM, Fortune 500), the nation's largest automaker, is expected to report
that sales fell 24% while Chrysler LLC sales are forecast to drop by 37%.

But it's not just U.S. automakers that are being hit by the credit
squeeze. Toyota Motor (TM), Honda Motor (HMC) and Nissan (NSANY) are
expected to post steep declines in U.S. sales as well.


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