October 3, 2007 (LPAC)--The impact of the accelerating mortgage meltdowns and banking crisis in many countries on their real economies, showed clearly again in September data on auto sales, an important indicator of economic growth or its reverse.

In the United States, the biggest market for automobiles, was a "Sad September," with sales down 3% from September 2006 and 12% from August. After falling by 3% from 2005 to 2006 as a whole, U.S. auto sales have fallen by at least that much from 2006 to 2007, in every month except August, in spite of sales "incentives" which now average 10-12% of the total cost of a car, SUV, or pickup. September sales were only about 1.25 million cars and light trucks, indicating an annual rate of less than 16 million sales. Sales were over 17 million two years ago--a level below 16 million, which would take the industry back to 1995-6 levels, is considered a possible "red line" for bankruptcy of one of the "Big Three," most likely Ford.

This pattern was global in the biggest national markets outside China. Japan's sales were down 9% from a year ago, the 19th consecutive month of decline for Japanese auto sales.

Korea's "Big Six" sold 16% fewer cars worldwide than one year earlier. Total Canadian car sales were 2.9% down from September 2006; and Germany, Europe's biggest national car market, experienced an 11% drop.