Auto sales dry up in December

Normal 0 false false false EN-US X-NONE X-NONE MicrosoftInternetExplorer4 /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-qformat:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:11.0pt; font-family:"Calibri","sans-serif"; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-fareast-font-family:"Times New Roman"; mso-fareast-theme-font:minor-fareast; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin;} Only a few days after the US government announced its bail-out for the auto industry, automakers have reported sharp falls in December sales as the economic slowdown continues to hit consumer spending.   The Big Three US automakers all saw a dramatic sales slump, with Chrysler the hardest hit, as its December sales were 53 percent down on December 2007.   FordÔÇÖs monthly US sales fell 32 percent compared with December last year, while General Motors sales declined 31 percent.   US auto makers are not the only ones to suffer, however. Toyota recorded a 37 percent sales decline and Honda a drop of 35 percent, while Nissan sales fell 31 percent.   Worldwide car sales for December are expected to be down 40 percent, as consumers stay away from car showrooms.   Chrysler said in a statement that it would "continue to invest in quality and fuel-efficiency improvements on its current line-up, while developing all-new vehicles for the next generation."   The company is planning to offer discounts of up to $8,000 on some of its models to lure customers back to its showrooms.   Hyundai has taken the initiative by promising to let customers return cars free for up to a year if they lose their jobs and can't keep up with their payments.   Industry analysts expect similar incentives such as zero percent financing and cash rebates to continue well into 2009, as car firms try everything they can to boost sales.   "You look in the paper and the deals on brand new GM pickups are astonishing,ÔÇØ said Aaron Bragman of IHS Global Insight, Troy, Michigan. ÔÇ£The discount that you get buys a heck of a lot of gasoline."   Automakers all over the world are struggling to reduce stocks of unsold vehicles, and many have resorted to temporary plant closures, job cuts and extended holidays for workers.   US automakers expect a continued decline in 2009, but expressed hope that the pace of the losses would ease.   "We're optimistic that it's a year that will at least gradually improve and not see the massive deterioration that we saw in the third and fourth quarter of 2008," GM sales chief Mark LaNeve said in a conference call with reporters and analysts.   GM said it expected to keep its 2009 sales forecast unchanged at between 10.5 million and 12 million vehicles.   Toyota, which recently forecast its first-ever annual operating loss, said it would offer new cash-back discounts to US purchasers in the current quarter and was hopeful that the economy would begin to improve slowly in the second half of the year.   "The sooner stimulus efforts find their way to where they'll do the most goodÔÇöand that's in the hand of the consumerÔÇöthe sooner we'll see a turnaround in confidence levels and a return of buyers," said Toyota Motor Sales President Jim Lentz.     *┬á┬á┬á┬á┬á┬á┬á┬á┬á *┬á┬á┬á┬á┬á┬á┬á┬á┬á *