Bad year for auto sales ends with momentum

DETROIT - Big automakers are glad to see the end of 2009, the worst year for U.S. sales in nearly three decades.

Over those 12 recession-plagued months, sales of cars and light trucks were down 21 percent, to 10.4 million, as drivers blew past showrooms.

Detroit's three automakers and the top Japanese firms - Honda Motor Co., Nissan Motor Co., and Toyota Motor Corp. - all saw sharp declines. Yet they also saw momentum going into 2010.

"It's not a disaster anymore," said Aaron Bragman, an industry analyst for IHS Global Insight in Troy, Mich.

For most of the industry, 2009 was brutal, as credit froze, the economy and consumer confidence faltered, and unemployment rose to 10 percent. U.S. sales haven't been so bad since 1982, in the midst of another recession.

Smaller, cheaper vehicles helped drive gains, though.

Subaru of America, based in Cherry Hill, reported a 15 percent sales gain for the year and a 33 percent rise in sales last month over December 2008 levels.

Hyundai continued its surge with an 8 percent yearly gain, while its low-cost Kia brand reported 2009 sales gains of nearly 10 percent and a 44 percent gain in December.

General Motors and Chrysler took the biggest hits after both went through bankruptcy and stayed alive with government aid.

For the year, GM sales were off 30 percent from 2008, while December sales fell 5.6 percent. GM said its numbers were down for the year because it reduced low-profit sales to rental-car companies and is phasing out or selling the Saturn, Pontiac, Saab, and Hummer brands.

Mike DiGiovani, GM's top sales analyst, said the company saw its U.S. market share stabilize at 20 percent. "That's very encouraging given all that we've been through this year," he said.

GM is optimistic about 2010, DiGiovani said, predicting total sales of 11 million to 12 million vehicles.

Chrysler sold only 931,000 vehicles for the year, its worst performance since 1962. The automaker saw sales drop 36 percent for 2009, but only 4 percent in December, far better than the double-digit drops it reported earlier in the year.

And last month's sales for Chrysler rose 36 percent over November, showing signs of some progress at showrooms but also helped by less-profitable sales to rental companies and municipal fleets.

Honda sales were off 20 percent for the year but up 24.5 percent in December, while Nissan was up 18 percent for the month but down 19 percent for the year. Toyota sales were up 32 percent in December but down just over 20 percent for the year.

Ford Motor Co.'s full-year sales declined 15 percent, but the company said it posted its first full-year gain in U.S. market share since 1995. It also reported a 33 percent increase in December sales.

Ford's restructuring and new products helped it finish strong despite a difficult business environment, said Ken Czubay, vice president of U.S. marketing, sales and service.

For 2010, he said, "I'm leaving my seat belt on, because I think that volatility is still an element of the new norm."