Orders for automotive production robots dropped sharply in the first quarter of 2008, an indication that some purchasing programs may be on hold.

North American car companies and automotive suppliers purchased about 1,990 robots worth $149 million in the first quarter of 2008, a decline of 34 percent over the first quarter of last year, according to the Robotics Industry Association.

Robotics sales are a key indicator of the level of investment in capital equipment within the automotive industry. Purchases by automakers also are a major driver of sales for robotics manufacturers. Auto-related robot sales normally account for about 65 percent of robot orders placed in North America. First-quarter sales this year to automotive customers accounted for 52 percent of total orders.

"Welding and coating/dispensing orders showed big declines because these are heavily tied to automotive," said Jeff Burnstein, executive vice president of the robotics trade group in Ann Arbor, Mich.

The decline takes place after a surge in automotive robotics last year. Robot sales to North American carmakers and suppliers in 2007 increased 43 percent compared to 2006. Automakers and their suppliers purchased about 10,000 robots last year, up from roughly 7,000 robots purchased in 2006. Comparatively, first-quarter 2008 spending puts the auto industry on a pace to purchase slightly fewer than 8,000 robots this year.

"Automotive orders are always cyclical," says Ake Lindqvist, group vice president of ABB Robotics in suburban Detroit.

"We know Chrysler's new management has held back on previous planned investments until they have sorted out internal things, but it will come."

Lindqvist says he also expects Ford Motor Co., BMW and Hyundai to make major robotics investments in North American plants. "We will see an upswing somewhat in the third and fourth quarter of 2008, and a bigger swing back in 2009."