The Rocky Mountain Collegian

Issue date: 2/4/09 Section: News

Media Credit: Associated Press A GM sign sits in front of a long line of unsold 2009 Escalades at a Cadillac dealership in the southeast Denver suburb of Lone Tree, Colo., on Sunday, Dec. 7, 2008. General Motors' U.S. vehicle sales plunged 49 percent in January while Ford's sales dropped 40 percent, starting 2009 at an abysmal pace for the auto whole industry as lower sales to fleet buyers like rental car companies weighed down the U.S. automakers' results. (AP Photo/David Zalubowski)

DETROIT (AP) - Chrysler's U.S. vehicle sales plunged 55 percent in January, while General Motors' tumbled 49 percent and Ford's dropped 40 percent, starting 2009 at an abysmal pace for the whole auto industry as lower sales to fleet buyers like rental car companies weighed down the results.

Toyota's sales dove 32 percent for the month, Nissan's dropped 30 percent and Honda's fell 28 percent, putting the overall industry on track for its fourth straight month in which U.S. sales plunged 30 percent or more.

But Subaru bucked the trend of declines for a second month in a row, posting an 8 percent sales increase, and Hyundai said its sales jumped 14 percent.

Hyundai credited its increase to its offer to cover a new vehicle's depreciation if customers return a car within 12 months because they are unable to make the payments.

"This program gets to the root cause of today's economic concerns - fear of job loss," Hyundai regional general manager Peter DiPersia said in a statement.

Chrysler's sales chief, Steven Landry, told reporters earlier at a meeting with dealers that U.S. industry sales could drop as much as 35 percent in January. The annualized sales rate for the month could drop below 10 million for the first time in more than 26 years, he said.

According to Ward's AutoInfoBank, the last month in which the seasonally adjusted annual sales rate dropped below 10 million was August 1982, when it hit 9.9 million as the nation was mired in a recession.

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