WESTLAKE VILLAGE, Calif. -- Retail new-vehicle sales in the first nine days of October were down 33 percent versus the same period a year ago, and down 44 percent versus the first nine days of September, according to the Power Information Network (PIN).

The key drivers of this trend include a lack of high-impact incentives from the major automakers, higher gas prices, low inventory levels and a possible market adjustment due to exceptionally strong sales during the summer months, said Tom Libby, senior director of industry analysis at PIN.

Every one of the nine major new-vehicle manufacturers suffered a retail sales decline in early October versus a year ago. Retail sales of General Motors and Ford Motor Co. new vehicles were down 57 percent and 45 percent, respectively, compared to early October 2004.

"The aftermath of the employee pricing programs is having a dramatic impact on automotive retail sales in October," said Jeff Schuster, executive director of global forecasting at J.D. Power and Associates. "A lot could happen between now and the end of the month, but at this point, we’re on track for an October like we haven’t seen since the early 1990s."

Libby added, "It will be interesting to see if the automakers, particularly GM and Ford, can hold back on incentives if their sales and share continue to slip. I expect they will find a way to boost sales. I doubt that they will just sit back and let this trend continue."