By Poornima Gupta and Will Waterman
DETROIT/LONDON (Reuters) - The auto industry reeled from further sales declines in the United States as a slowdown that began there showed signs of spreading to Europe, Asia and Africa, forcing automakers to slash production.
U.S. auto sales fell for the 13th consecutive month in November, led by a 41 percent drop at General Motors Corp
Industrywide auto sales in November were down about 35 percent to a seasonally adjusted annual sales rate of around 10.5 million, the lowest in over two decades, the automakers said Tuesday.
Meanwhile, the three U.S.-based carmakers readied restructuring plans for the U.S. Congress, which is reviewing their request for emergency funding to survive the brutal downturn.
All major automakers reported double-digit declines for U.S. auto sales in November, hurt by a plunge in consumer confidence brought on by the turmoil in the financial markets and weakening U.S. economy.
Vehicle sales in November also tumbled in Europe, Asia and Africa, forcing production cuts across the globe.
New car registrations in Germany, Europe's largest car market, dropped 17.6 percent in November from a year ago, the VDIK association of foreign carmakers said on Tuesday, adding to a string of similar news across the continent on Monday.
It was the same story in Africa's top economy, South Africa, where new vehicle sales plunged 28.3 percent in the month.
As the global financial crisis makes consumers increasingly reluctant to part with cash and lenders unwilling to offer credit, carmakers across the world have struggled to find buyers to keep their production lines running.
GM and Ford Motor Co
"Consumers are under more and more pressure," said Jim Farley, Ford's marketing chief. "We could see some strength in the second half of next year or at least stabilization, albeit at a much lower level."
Toyota <7203.T>, which saw U.S. sales slide 34 percent, earlier said it is cutting production and slashing management bonuses by 10 percent in response to the slump in sales in the United States, Europe and even developing markets such as China. which carmakers had hoped would fuel near-term growth.
Toyota is halting production at assembly lines in two factories in Japan for two days later this month, cutting production primarily of its premium Lexus marque, which has seen a 24 percent drop in sales so far this year in Japan and sharp falls in the U.S., its main market.
Tata said it was suspending production at its commercial vehicle plant in Pune for three days from December 5, while local rival Mahindra & Mahindra
Sweden's Volvo
EMERGENCY FUNDING KEY
The sharp drop in demand across the globe and especially in the United States reflected the grim state of U.S. automakers, who are seeking $25 billion in emergency U.S. funding.
Ford, considered to be in the strongest financial position of the three Detroit automakers, submitted a restructuring plan to Congress in support of its application for a government credit line of up to $9 billion.
GM and Chrysler were expected to submit their plans later on Tuesday. GM's board began to review the top U.S. automaker's revamped business plan on Sunday and has been asked to endorse steps that include consideration of dropping or selling off the Pontiac, Saab and Saturn brands, according to people with knowledge of the plan.
Chrysler President Jim Press said on Tuesday that the automaker's plan would include cost-cutting and givebacks from all stakeholders, including suppliers and labor. He declined to reveal details.
Chrysler U.S. sales were down 47 percent last month.
(Additional reporting by David Bailey, Soyoung Kim, Kevin Krolicki, Michael Shields, Stella Mapenzauswa, Chang-Ran Kim and Gilles Castonguay; Editing by John Stonestreet)
