April 1 (Bloomberg) -- Automakers led by General Motors Corp. said U.S. sales dropped last month as record gasoline prices and growing concern the economy may be in a recession kept consumers away from showrooms.

GM's sales plummeted by a greater-than-forecast 19 percent. Ford Motor Co. and Japan's Toyota Motor Corp. fell more than 10 percent for their biggest declines in 2008. Honda Motor Co. and Nissan Motor Co. also slipped, while Germany's Volkswagen AG and South Korea's Hyundai Motor Co. gained.

U.S. sales of all automakers plunged 12 percent, the 10th loss in the past 12 months, according to Bloomberg data. The market is ``gripped by recession fears,'' said German automaker Porsche SE, down 25 percent.

``I'd like to be able to tell you the worst is behind us but I can't really say that,'' Ford Group Vice President Jim Farley said on a conference call today. ``The second quarter may be the worst sales period of the year.''

U.S.-based automakers' share of their home market decreased to 48.4 percent from 51.6 percent a year earlier, according to Autodata Corp. of Woodcliff Lake, New Jersey. Asian companies boosted their share by 2.5 points, to 44.4 percent.

Cars outsold trucks for the first time since May 2007, Bloomberg figures show, reflecting a shift in demand amid record high gasoline prices. Trucks are generally higher-priced and more profitable for automakers.

Lowest Since 2005

The industry's annualized sales rate for March skidded to 15.1 million cars and light trucks from 16.3 million a year earlier. That's the lowest level since October 2005.

Gasoline rose to $3.287 a gallon for regular unleaded on March 30, the highest ever and more than 61 cents above the year- earlier price. Consumer sentiment for the month fell to the lowest in 16 years on declining home prices.

Ford's 14 percent decline was paced by a 24 percent slide in F-Series pickups, the nation's top-selling line of vehicles. The company was helped by a gain in sales of its more fuel-efficient crossover sport-utility vehicles, such as the Ford Edge, which advanced 24 percent.

The Dearborn, Michigan-based automaker boosted sales at only one of six divisions, Jaguar, where sales advanced 5.1 percent. Land Rover was down 17 percent. Ford last month agreed to sell the two U.K. units to India's Tata Motors Ltd.

Honda slid 3.2 percent in March. Higher sales of Fit subcompacts and Civic small cars failed to offset an across-the- board drop for the Tokyo-based company's premium Acura brand.

Toyota's 4th Fall

Toyota said it sold 217,730 vehicles, down 10.3 percent, for its fourth straight monthly deficit. The Toyota City, Japan-based automaker said its namesake division lost 9.8 percent and its luxury Lexus marque decreased 14 percent. The Yaris small car was up 70 percent.

GM recorded shortfalls in seven of its eight divisions, with Saab boosting sales by 4.4 percent. The Chevrolet Silverado pickup, the Detroit-based automaker's best-selling vehicle, tallied 24 percent fewer sales last month than a year earlier.

Chrysler LLC, the U.S. automaker most dependent on pickup, minivan and SUV sales, had a 19 percent deficit, roughly in line with analysts' projections of a 12 percent drop.

Analysts' estimates for March account for two fewer selling days than in March 2007. Bloomberg and some automakers use unadjusted percentage comparisons, which are about eight percentage points lower than the analysts'.

Taking the eight-point difference into account, GM's 19 percent plunge was deeper than analysts' forecasts of a 5.5 percent adjusted decline.

Nissan, VW, Hyundai

Tokyo-based Nissan said its sales fell 3.8 percent, Volkswagen's grew 8.7 percent and Hyundai's rose 1.9 percent.

``Market demand is more sedan-weighted, more to small cars,'' Al Castignetti, Nissan North America vice president, said in an interview. Higher fuel prices make ``people rethink their vehicle choice and consider more efficient types.''

A $168 billion federal stimulus package to consumers and businesses, interest-rates cuts that are starting to reduce mortgage costs and steps to bolster liquidity for banks should speed up the economy in the second half, Michael DiGiovanni, GM's sales analyst, said on a conference call today.

Same Forecast

The automaker is sticking with an industry forecast of about 15.7 million cars and light truck sales this year. GM shares climbed $1.10, or 5.8 percent, to $20.15 in New York Stock Exchange composite trading.

Ford advanced 25 cents, or 4.4 percent, to $5.97, while Toyota's American depositary receipts were up 2.4 percent to $103.28.

Consumer sentiment in the Reuters/University of Michigan index slipped to a 16-year low. The index decreased to 69.5 in March from 70.8 in February.

Declining sentiment, falling home prices and cuts in manufacturing have raised concerns the U.S. may have already entered a recession, said some analysts.

Payrolls dropped in the first two months of 2008 and economists forecast they were down again in March. The Labor Department's report comes out April 4. Industrial production fell in February by the most in more than two years.

Recession Scenario

``The U.S. started a recession in January and we're entering our fourth month, but the data suggests it's not a very deep recession,'' Dana Johnson, Comerica Inc. chief economist, said in an interview. ``There is tremendous fear out there that it's going to get a lot deeper. That's probably overblown.''

The higher fuel costs may have helped Honda and Toyota fare better than domestic brands because of the Asian automakers' greater percentage of cars in their sales mix, as well as smaller SUVs.

``Gas prices are a major consideration for buyers, and if they're going up, they're just more inclined to hang on to their older vehicle,'' Chris Hopson, an analyst at forecasting firm Global Insight Inc. in Lexington, Massachusetts. ``People just feel they don't have as much money as they once did.''

To contact the reporter on this story: Greg Bensinger in New York at gbensinger1@bloomberg.net; Alan Ohnsman in Los Angeles at aohnsman@bloomberg.net

Last Updated: April 1, 2008 20:18 EDT