BERKELEY-- -- New car sales in California have dropped dramatically and the decline is being felt beyond dealer showrooms.

A car dealers association said sales of new cars and light trucks fell by 19% in the third quarter.

Another report said some 700 new car dealerships nationwide will close this year and some 37,000 people will lose their jobs.

Cities will feel the pinch in lost tax revenues.

"It means there will be less sales tax revenue moving forward and we don't know how long it's going to last.. so there is an uncertainty factor here," said Michael Caplan, Berkeley's economic development manager.

The White House said today that some U.S. automakers are looking for federal assistance to help them survive the economic downturn.