Auto sales hit by credit crunch

Automobile sales fell sharply in the United States last month, giving another sign that the problems in the financial sector are working their way through to the general economy.  ┬á All the major auto manufacturers saw sales fall in September compared with the same month a year earlier, with Nissan suffering a 37 percent decline. ┬á┬á Sales at Ford were down 34 percent over last September, while Chrysler was down 33 percent, Toyota 32 percent and Honda 24 percent. General MotorsÔÇÖ reward for cutting its prices was a relatively modest 16 percent fall in sales.┬á┬á US sales of luxury German brands also fell last month, with BMW down 30 percent, Mercedes-Benz down 16 percent, and Porsche down by a massive 45 percent of sales. ┬á┬á Auto manufacturers are doing all they can to move production away from gas-guzzling trucks and SUVs to smaller, more fuel efficient vehicles.┬á┬á On show at the Paris Motor Show this week is a growing line up of small, yet luxurious, concept vehicles such as the Audi A1, the BMW X1 (a tiny SUV) and the Mini crossover, designed to give consumers reassurance that they are not trading down by downsizing their vehicles.┬á┬á The strongest hint at the next industry driver in the years to come lies in the battery technology showcased by a number of carmakers at the Paris show. The production version of the Chevrolet Volt, first seen in the flesh at General Motors' Centenary in September, is on display.   ┬á┬á*┬á┬á┬á┬á┬á┬á┬á┬á┬á *┬á┬á┬á┬á┬á┬á┬á┬á┬á *