March US auto sales plunge, but bottom may be near

The year over year decline in U.S. auto sales is quite remarkable. GM down 45%? These are depression like numbers, and is a telling sign of the scope of this economic contraction. The governnment needs to give buyers some significant incentives to go out and buy a new car. The new stimulus package allows a new car buyer to deduct sales tax paid on new cars on your income tax (even if you only take a standard deduction). A substantial tax credit would be a much more effective incentive to go car shopping. Instead of throwing taxpayer money down the blackhole of proping up the manufacturers, stimulating the demand side is what it will take to save the U.S. automotive industry, and it must be saved.-Lou

March US auto sales plunge, but bottom may be near

* U.S. auto sales fall 37 pct; drop narrower than feared

* GM's U.S. sales plunge 45 pct; Ford sales down 42 pct

* Sales rise in Italy, France on incentives

DETROIT, April 1 (Reuters) - U.S. auto sales fell 37 percent in March, a smaller-than-expected drop that encouraged hope the world's largest car market is nearing a bottom after a freefall that has pulled the industry into a deepening crisis.

General Motors Corp (GM.N), which has until June to complete a new restructuring under federal oversight that could push it into bankruptcy, said its sales fell 45 percent, the largest decline of any of the major automakers.

Industry-wide sales dropped for the 17th consecutive month but were up from February with the help of record discounts and higher sales to fleet operators such as government agencies.

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http://www.reuters.com/article/marketsnews/idCAN0129391420090401?rpc=33