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Car Sales Down for 2009 the worst in 30 years

DETROIT, USA – United States automakers just finished up with one of the worst years for profit generation that they have experienced in the last 30. The only bright period of the entire year, in terms of auto sales, was December. After 11 months of sales-based gloom, various automakers reported having finished the year with strong numbers. And of course, this builds their hope for 2010.

To this point, Ford is the only American automaker that has managed to avoid seeking protection from bankruptcy. It also has fared better overall in 2009 than has its 2 Detroit competitors: General Motors and Chrysler. While Chrysler was mouthpunched with a 36% sales decrease for the year, GM was slightly less devastated with a knee-buckling 30% decrease - and then Ford with a seemingly minimal 15% decrease. Still, finishing the year with a 15% decrease in sales volume would permanently cripple many companies.

Chrysler's sales performance for 2009 was worse than it has been since 1962. Lacking new products, and struggling to rise above a developing reputation of inferior quality, Chrysler fell through the door late having sold just 931,000 units. And while gasping for air, December sales for Chrysler showed hope as they were only down 4% from last year.

After discontinuing the Pontiac, Hummer, Saab and Saturn brands, December sales for General Motors were down 5.7% when compared with those of last year. Ford weighed in as the only US-based automaker to show any increase over last year (Dec. only). And it did so quite impressively: 33% in fact. This sales surge is believed to be due to the public demand for fuel-efficient, mid-sized vehicles – Ford's current specialty. And of course, the fact that Ford has not relied on the government for bankruptcy protection has instilled public confidence.

However, it was not just the US-based automakers that suffered in 2009. Overall, United States auto sales have not been so low since 1982. That year, enveloped in recession, Americans purchased just over 10.3 million units. There are a few success stories in 2009 however. For instance, Japanese automaker Hyundai enjoyed an 8% gain in US sales for the year. Likewise, Kia benefitted from a 10% yearly gain – with a whopping 44% gain for December alone. Hyundai and Kia both specialize in small, fuel-efficient cars that are easy on fuel and maintenance expenses.

Most automakers agree that market conditions are improving as we enter into 2010. They believe that American consumers are beginning to relax just enough financially that they are willing to be a bit more aggressive in their spending habits. Surely, hybrid vehicles, electric vehicles and other fuel efficient types have the brightest futures of all. And while most Americans still feel that we are in the middle of a recession, perhaps there is beginning to be the slight flicker of a light at the end of this dark economic tunnel.

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