The misery in the US car market deepened yesterday when General Motors (GM), Ford and Toyota reported dire sales for last month.

General Motors sales crashed 45 per cent to 170,585 vehicles while Ford’s sales fell 30 per cent compared with the same month last year. It sold 132,838 vehicles in October compared with 190,195 a year earlier. Toyota fared slightly better but still suffered a drop of 26 per cent to 152,101.

Some analysts forecast that October’s seasonally adjusted annual sales rate could fall to a 25-year low. It is estimated that it could fall to 10.8 million or less, compared with 16.1 million a year ago. According to Ward’s AutoInfoBank, if the total fell below 10.83 million, it would be the worst sales month since March 1983.

Mark LaNeve, GM’s vice-president for North American sales, said: “We are obviously disappointed in our results, which reflect a difficult comparison with a strong year-ago October performance. More importantly, it also reflects an unprecedented credit crunch that is dramatically impacting the entire US economy.”

GM, which makes Cadillacs, is attempting a merger with Chrysler in order to try to pool cash and create a stronger joint organisation. GM has asked the US Government for up to $10 billion (£6.3 billion) in cash to help to smooth the merger, though there is speculation this has been rejected.

Chrysler has described the downturn in the US market as unprecedented. Bob Nardelli, chief executive, made the remark as he explained recent cutbacks in a letter to Chrysler’s staff. Chrysler is cutting about 5,000 administrative and managerial jobs.

If GM does merge with Chrysler, some industry analysts predict that more than 30,000 jobs could be lost because of the large overlap of the two struggling companies. Unions are growing increasingly concerned.

Ken Lewenza, head of the Canadian Auto Workers union, said yesterday: “We don’t think a merger is in the interests of our members. I don’t see how you can take two sick patients and turn them into a healthy one.”

Meanwhile Ford, the second-biggest US motor manufacturer, will come under pressure on Friday to demonstrate that it is tackling the sharp downturn. It is due to publish third-quarter figures, after an $8.7 billion net loss in the second quarter. The carmaker could announce fresh plant shutdowns or a shorter week.

Poor consumer confidence, the economic downturn and a lack of credit took their toll across Ford’s range of cars but hit its sports utility and fuel-hungry vehicles the hardest. Sales of Ford’s SUVs plunged 54 per cent, while its Volvo premium brand suffered a 52 per cent drop in sales of cars and light trucks in the US in October.

Ford said yesterday that it would fight the bad market with a product offensive. Jim Farley, vice-president of marketing, said: “In the next nine months we will introduce nine new products plus two new hybrids which together will account for 45 per cent of our volume in 2009.” Ford is adding an extra 1,000 workers for its F-series pickup truck in anticipation of higher demand for a new version.

Porsche sales in the US more than halved last month. The luxury carmaker, which is trying to take over Volkswagen, said sales fell 52 per cent to 1,427 cars.

In Britain, the car industry is braced for more poor figures when it reports October sales on Thursday.

— Car workers were at the forefront of industrial action when more than 45,000 metal and electronics workers across Germany went on strike over an 8 per cent pay claim. The IG Metall union coordinated the wave of short walkouts, which affected more than 160 factories including plant operated by Ford, General Motors, Audi, Mercedes, Daimler, MAN, the truck-maker, and Bosch. the auto parts supplier. IG Metall had rejected an offer of 3.6 per cent over 14 months.

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