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2010′s Worst-Selling Cars

2010′s Worst-Selling Cars

After bottoming out in 2009, auto industry sales are slowly recovering. The U.S. will sell about 11.5 million cars and light trucks this year, up from 10.4 million in 2009. And the news only gets better: IHS Automotive forecasts sales of 12.8 million vehicles in 2011, and 17.1 million by 2015.

Total light vehicle sales are up 11.1% through November, with many brands beating the trend and gaining market share: Buick is up 53.5%, Cadillac is up 38%, Infiniti is up 26% and Ford, Hyundai and Jeep are each up 23%.

But while most carmakers are enjoying gains from last year’s dismal sales levels, the bounce is not universal. Some models are just languishing on dealer lots, victims of outdated designs, lack of marketing support and intense competition.

Forbes studied industry sales figures through November to cull a list of the year’s worst-selling vehicles. We tossed out brands like Saturn, Pontiac and Hummer that are being killed, and didn’t count vehicles that are being discontinued like the Chrysler PT Cruiser or Kia Rondo. We also excluded cars that we know are in the midst of a model life cycle change because sales typically fall as automakers are trying to clear out the old design before ramping up production of the new one.

We found that practically the entire SuzukiSZKMF.PKnewspeople ) lineup is in the doldrums, lost amid tougher competition. Sales are down 42% for the year overall, with vehicles like the compact SX4, Grand Vitara SUV and Equator pickup dying on the vine for lack of resources. But there’s reason to hope: The new Kazashi mid-sized sedan has been well-received, and Suzuki plans to launch a new advertising campaign on Christmas. It’s working to refresh its lineup, too. After ending its long-term relationship with General Motors, the Japanese carmaker is now in talks with Volkswagen (VLKAF.PKnews people ) about co-developing new vehicles.

Other poor performers include the fuel-sipping Smart ForTwo, which was all the rage in 2008, when gas was $4 a gallon, but has endured a two-year sales collapse. The quirky two-seater from Germany’s Daimler AG is down 60% this year, on top of a 41% decline in 2009. Penske Automotive GroupPAG -news people ), which distributes the vehicle in the U.S., is now testing Car2Go, a car-sharing concept for Smart, and plans to market an electric Smart soon.

Small cars in general aren’t selling as well now that gas prices have fallen and pickups and larger vehicles are making a comeback. It doesn’t help if your company has taken a beating on quality issues, either. Toyota (TMnews people )’s Yaris subcompact, for instance, is down 37.6% and its Scion xD is down 31%. Both are about two years old, and face stiff competition in a newly crowded market segment. They’ve been tarnished, too, by Toyota’s widely publicized quality recalls. Overall, Toyota sales are down 0.8% so far this year.

Also struggling to stand out from the crowd is the Mazda (MZDAF.PKnews people ) Tribute, a poor stepchild in Mazda’s lineup of snappy coupes and sports cars. It’s based on the Ford Escape crossover, but pales in comparison because it hasn’t been updated with some of Ford’s appealing high-tech features. Consumers have figured out they might as well buy the Escape.

In this economy, nobody really needs a sports car. Thus, the sports car segment is suffering. The Mazda RX 8 is down 50% from a year ago, and the PorschePSEPF.PKnews -people ) Cayman is down 31%. Porsche hopes the newly introduced Cayman R, featuring Porsche’s most-powerful mid-engine, will add a little excitement to boost sales

NOVEMBER U.S. AUTO SALES UPDATE: HYUNDAI, BIG 3 UP, TOYOTA DOWN

20% of online shoppers researching the Escape looked at the Chevy Equinox, according to Edmunds.com, while only 8.6 percent of those researching the Equinox also looked at the Escape. GM’s Equinox small SUV outsold Ford’s Escape but Ford said that may be because some Escape buyers have move up to the Ford edge. Chevy Camaro  led against the Ford Mustang. GM sold 4,164 Camaros in November, the total for the year 75,685,  Ford sold 4,093 Mustangs, for an 11-month tally of 68,264.

Ford’s sales increase was driven by the redesigned Edge, a 26 percent jump in F- series pickup deliveries and strong demand for small Focus and Fiesta. Ford’s Lincoln rose 19 percent on sales of MKZ , MKX and Town Car, which the automaker is discontinuing.

Since filing for bankruptcy last year, GM has closed Hummer, Pontiac and Saturn and sold Saab to focus on Buick, Cadillac, Chevrolet and GMC. Sales of those four remaining brands rose 21 percent. Leasing accounted for 11 percent of GM sales, up from nearly 8 percent.

Buick sales up 36 percent to 11,725 vehicles, led by Enclave SUV. GMC sales gained 30 percent to 27,590. Cadillac up 21 percent to 11,801.

Sales of the Cadillac SRX jumped 36 percent.

Chrysler’s gains were driven by the redesigned Jeep Grand Cherokee, sales of which more than tripled from last November to 10,984. Ram pickup sales rose 86 percent to 18,206 last month but car sales fell 9.1 percent to 13,112

U.S. sales of Nissan and Infiniti vehicles rose 27 percent from a year ago to 71,366.

Honda, fourth in U.S. sales, had a 21 percent increase in deliveries of Honda and Acura brand models last month, the company said in a statement. Sales rose to 89,617 units from 74,003 a year ago, Honda said. Deliveries were forecast to increase 24 percent, the average of four analysts’ estimates.

Hyundai Motor Co. increased U.S. sales 45 percent in November to 40,723, a record for the month. Growth was led by increased sales of Sonata and Genesis sedans and Tucson crossovers.

Among the top sellers in the U.S., only Toyota reported a decline in the month. U.S. vehicle sales fell 3.3 percent on an unadjusted basis.

READ THE COMPLETE STORY HERE:


http://www.bloomberg.com/news/2010-12-01/gm-s-u-s-sales-in-november-climbed-11-boosted-by-equinox-terrain-suvs.html

Survey: Toyota’s Recalls Drive Shoppers to Ford, Hyundai

(The Wall Street Journal) – The accumulation of Toyota’s recalls, which deepened Wednesday to include the the seemingly unlikely 2003 Sequoia SUV, is driving buyers to rivals like Ford and Hyundai, The Wall Street Journal’s Driver’s Seat blog reported Thursday.

People who were planning to buy a car in a year or so “have pushed Toyota way down on their consideration lists,” says Art Spinella of CNW Research in Bandon, Ore. According to his survey data, 17 percent of these so-called long-range intenders have Toyota among their top three choices, down from 27 percent a year ago. In the same period Hyundai rose to 12 percent from 11 percent and arch rival Ford jumped to 26 percent from 17 percent.

Ford is also the first choice of people who had previously considered a Toyota, and Hyundai is second. “These competitors are filling the void,” Spinella says. Short-term buyers and longtime Toyota owners are another story, though. Shoppers planning to buy soon are still buying Toyotas in part because dealers are piling on discounts and other incentives — a tactic Toyota used to avoid. The Toyota faithful are largely sticking with the brand, he says.

In the used car market, Toyotas are losing the resale value advantage they have long enjoyed. A year ago used Toyotas were typically fetching 97 percent of the asking price, compared with Ford at 90 percent. Today Toyota is at 90 percent and Ford is at 97 percent, according to CNW.

Source: The Wall Street Journal

Toyota back-to-back U.S. sales increases,as auto demand continued recovering in April

May 4 (Bloomberg) – Toyota Motor Corp.extended discounts that brought back-to-back U.S. sales increases, and Nissan Motor Co. led the largest Asia-based carmakers’ gains for the second month in a row as auto demand continued recovering in April.

Deliveries for Nissan rose 35 percent from a year earlier, while Toyota yesterday reported a 24 percent advance after continuing no-interest loans and discount leases on most of its namesake brand’s models in April. Honda Motor Co. posted a 13 percent increase andHyundai Motor Co. sales were up 30 percent.

“Toyota’s incentives pretty much set the pace,” said James Bell, executive market analyst for Kelley Blue Book in Irvine, California. “Everybody being up a little bit is tied to the Toyota program — it’s raising the tide for the industry.”

Toyota recalls of more than 8 million autos globally for flaws linked to unintended acceleration and congressional hearings that tainted its image led the world’s largest automaker in March to introduce discounts across its lineup. For now, that strategy will remain in place.

“Our brand has taken some bruises over the past couple of months,” Bob Carter, U.S. vice president of Toyota sales, said in a conference call yesterday. “I don’t see us changing our incentives in the short term.”

Sales Jump

The Tokyo Stock Exchange is closed for a holiday. Hyundai rose 3,500 won, or 2.6 percent, to 138,000 won in Korea Stock Exchange trading. Affiliate Kia Motors Corp., which boosted sales 17 percent, gained 1,150 won, or 4.1 percent, to 28,950 won in Seoul.

U.S. industrywide auto sales rose 20 percent in April to 982,131 cars and light trucks, according to Autodata Corp., a research firm based in Woodcliff Lake, New Jersey. U.S. sales have risen for six consecutive months.

The Asia-based brands boosted their combined U.S. market share to 46.5 percent, a 1 percentage point gain from a year earlier, Autodata said.

General Motors Co., Ford Motor Co. and Chrysler Group LLC, the U.S.-based automakers, held 45 percent, a one-point drop. Sales rose 6.4 percent for GM and 25 percent each for Ford and Chrysler.

Toyota sold 157,439 Toyota, Lexus and Scion vehicles last month, rising from 126,540 a year earlier. The Toyota City, Japan-based company said the increases were led by Corolla small cars, Prius hybrids, Avalon sedans, Highlander and RAV4 sport- utility vehicles, and Sienna minivans.

The automaker, which last month recalled Lexus GX 460 SUVs to adjust stability controls, is expanding production of most models in North America because of rising demand, Carter said.

Toyota Incentives

The incentives being extended through May include no- interest loans on seven models, discounted leases on 10 others and two years of no-cost maintenance for all new vehicles, Carter said.

“It’s largely in the same direction” as April, with some regional variation, particularly for Camry sedans, he said.

Toyota incentives averaged $2,498 per vehicle in April, up from $1,634 a year earlier, according to Edmunds.com, a Santa Monica, California-based provider of industry data.

Toyota’s market share for the month rose to 16 percent, from 15.4 percent in April 2009, according to Autodata.

Honda, Japan’s second-largest automaker, sold 113,697 Honda and Acura vehicles, compared with 101,029 a year earlier. The Tokyo-based company benefited from demand for Accord sedans, CR- V, Pilot and Acura MDX SUVs, and Ridgeline pickup trucks.

Honda’s market share for the month was 11.6 percent, a drop of 0.9 percentage point, according to Autodata.

Nissan’s Gains

Nissan reported sales of 63,769 Nissan and Infiniti vehicles, an increase from 47,190. The Yokohama, Japan-based company had the biggest volume increase among Japanese and South Korean automakers in the U.S. this year through April.

Small cars such as the Versa and Sentra posted percentage gains of more than 38 percent, while sales of light trucks including Frontier and Titan pickups and Murano, Rogue, Pathfinder and Armada SUVs were “surprisingly strong,” said Al Castignetti, Nissan’s vice president of U.S. sales.

“The exit of a lot of domestic production of SUVs has opened that segment up,” he said in a telephone interview yesterday. Nissan is considering boosting light-truck production, “but we need to also see what happens with fuel prices,” Castignetti said.

Nissan’s market share rose to 6.5 percent in April from 5.8 percent a year earlier, Autodata said.

Toyota’s American depositary receipts fell $2, or 2.6 percent, to $75.69 at 12:30 p.m. in New York Stock Exchange composite trading. Honda’s ADRs fell 99 cents, or 2.9 percent, to $32.69 in New York and Nissan’s fell 51 cents, or 2.9 percent, to $16.86 in over-the-counter trading.

Hyundai, Kia

Hyundai, South Korea’s largest automaker, boosted sales to 44,023 vehicles, from 33,952 a year earlier. The Seoul-based company’s gains were led by the revamped Sonata sedan, with a 57 percent surge to 18,536 units.

“Sonata is probably the best mass-volume car Hyundai has ever made,” saidJesse Toprak, an analyst at TrueCar.com in Santa Monica, California.

If demand remains near the current pace “this year has a shot at being an all-time sales record” for Hyundai, said John Krafcik, the company’s U.S. head, in a Bloomberg Television interview. “Consumers really are getting back into the market.”

Hyundai’s U.S. market share last month climbed 0.4 percentage point to 4.5 percent, according to Autodata. The carmaker rose 4.1 percent to 140,000 won at 11:19 a.m. in Seoul.

Kia boosted sales to 30,306 vehicles, helped by the new Sorento SUV that the Seoul-based company began building in West Point, Georgia, this year. It gained 4 percent to 28,900 won in Seoul.

Fuji Heavy Industries Ltd.’s Subaru, a Toyota affiliate, reported a 48 percent sales increase, the biggest percentage gain in the industry. Mazda Motor Corp.’s sales rose 17 percent.

Toyota Sales Surge, Despite Wave of Bad News

Toyota showed a dramatic U.S. sales recovery in the first two weeks of March. Of course, so did the rest of the industry, which is on track to sell 12 million cars in 2010, compared to just over 10 million in  2009.

But it was Toyota’s performance that stood out, given the endless bad publicity it has been enduring. My theory is that people’s personal experience with Toyotas trumps the second-hand bad news. They worry somewhat about sudden acceleration, but they’re reassured by statistics that suggest it’s very unlikely to happen to them.

Part of my evidence for this is anecdotal, since no less than three people (including my mother) told me, unsolicited, of their loyalty to the Toyota brand in the last few days. They’d buy Toyotas again.

Toyota’s reliability is not in question. In a J.D. Power survey released March 18, the Lexus brand was third overall, and the Toyota brand fifth. Four Toyotas (the Highlander, Prius, Sequoia and Tundra) were first in their segments, more than any other manufacturer. (Here’s a summary of 2010 Toyota ratings by J.D. Power.)

A warning sign for Toyota, though, is that the latest report fromKelley Blue Book shows Toyota falling from the top spot in brand loyalty. Hyundai was number three, but now Toyota occupies that spot and Hyundai is number one, and Honda second. Given the circumstances, being third is still a very good showing.

Incredible incentives are also helping Toyota. I’ve heard from many friends who say they’re attracted by Toyota’s great deals, especially because (unlike FordGM and Chrysler) the Japanese automaker has rarely discounted before.

As the Wall Street Journal noted, “The Japanese auto makerusually refrains from big incentive campaigns, but began offering zero-percent financing, cash rebates and subsidized leases to halt a slide in its U.S. market share in the past two months.”

Jeff Schuster of J.D. Power’s global forecasting unit warned that Toyota could spark an “incentive war” among major carmakers, andJeremy Anwyl, chief executive of Edmunds.com, cautioned that the sales bounce we’re seeing is largely due to the incentives—take those away, and the bounce goes away, too.

Despite its many missteps on sudden acceleration, Toyota has built very good cars for a very long time. Don’t bet against it coming out of its crisis and regaining its status as America’s favorite car company.

U.S. auto market continues its recent strengthening trend with sales of almost 700,000 in January, up nearly 7 percent compared with 654,757 vehicles in January ’09. Seasonally adjusted light-vehicle sales rate up to 10.76 million units versus last year’s 9.59 million

Jan._'10_Big_7_graphic_r1_550 - final.jpgThe U.S. auto market in January continued its recent strengthening trend, with overall sales just shy of 700,000 vehicles (698,456 vehicles) for the month rising by nearly 7 percent compared with 654,757 vehicles in a very weak January 2009. The seasonally adjusted light-vehicle sales rate ticked up to about 10.76 million units versus last year’s 9.59 million - and roughly in line with the firming picture of recent months.

Toyota was clearly the biggest loser in January due to its recalls and stop-sales order on eight of its bestsellers. Yet, January’s results varied widely for its top competitors that may have tried to take advantage of Toyota’s problems with special incentives meant to lure disaffected Toyota customers in particular.

Toyota’s January sales “were 23 percent below our internal target,” Robert Carter, Toyota Motor Sales U.S.A.’s group vice president and general manager of the Toyota division, said in a conference call Tuesday. That number insinuated that more than 20,000 lost sales were attributable to the recall and sales stoppage in just the last few days of January.

Toyota only escaped greater damage in January because it didn’t halt sales until January 26, when only four sales days were left in the month. And the toll on the Toyota brand, especially, has been heavy nonetheless: Sales were down more than 47 percent compared with December, and January sales ranked as the worst month for Toyota since January 1999.

“Toyota was clearly the biggest loser of the month,” said Jessica Caldwell, director of U.S. sales analysis for Edmunds.com. As long as the sales suspension continues, predicted Edmunds.com Senior Analyst Ray Zhou, Toyota-brand sales will drop by about 75 percent overall as long as the stop-selling order remains in affect.

As for Toyota’s competitors, results were mixed.

Ford continued its surge of recent months by reporting a 24-percent sales increase for January. The company credited its increasingly robust product portfolio, but Ford also dangled $1,000 rebates to current owners of Toyota models and of products by Honda, which is facing its own significant safety recall.

Hyundai, which launched a similar incentive program, saw its January sales rise by 24 percent over last year as well. Recently, Ford and Hyundai  clearly have been the two hottest companies of the Big Seven of U.S. auto sales.

Meanwhile, General Motors – which first introduced a Toyota-targeting incentive – reported a 14-percent sales increase in January compared with a year earlier.

“What we responded to last week was feedback from our dealers who were hearing from Toyota owners who wanted to get into a new vehicle,” explained Susan Docherty, GM’s North American vice president of sales and marketing. “Our January go-to-market plan had been to focus on our loyal owners. So we needed to adjust our incentives” after Toyota’s troubles deepened, opening an opportunity for rivals.

Honda’s January sales, however, dropped 5 percent. It did nothing special to target Toyota owners. Meantime, Honda also had to cope with the fallout from its own announcement of a recall of 646,000 Fit/Jazz and City models, including 140,000 in the United States, because of a faulty window switch.

Overall, Edmunds.com’s Caldwell said, January was a rather tepid month. Strong incentive campaigns in December had “pulled forward quite a few” retail sales from January, she said. And the return of a relatively normal market for fleet sales in January helped comparisons of this year versus January 2009, when overall fleet sales were abysmal.

“The next big shopping weekend,” Caldwell said, “will be Presidents’ Day” in mid-February. “We should see month-to-month sales growth” for February from January, she said.

GM paragraph up.jpgGM: Regaining Its Footing

Robust fleet business helped GM post a 14-percent overall sales increase in January compared with a year ago, to 146,316 units. Such is GM’s rising confidence that the company firmed up its official forecast of total U.S. light-vehicle sales for 2010, to a range of 11.2 million to 11.7 million units from the previous range of 10.7 million to 11.7 million units.

2010 GMC Terrain - 200.JPG“The economic news continues to be mixed in the U.S., but there are increasingly positive signs of recovery,” said Michael DiGiovanni, GM’s executive director of global industry and market analysis.

But GM’s retail sales fell by 10 percent during the month as the company continued to cope with the nearly complete disappearance, by now, of its Pontiac, Hummer, Saturn and Saab brands from the marketplace.

“We were only selling four brands” in January versus eight a year ago, Docherty noted. The abandoned brands represented less than 2 percent of January sales and now account for less than 1 percent of dealer vehicle inventories. “We’re 10 months ahead of schedule on the wind-down of Pontiac and Saturn brands,” she said.

Meanwhile, fleet sales burgeoned in January. A year ago, GM sold only 13,000 vehicles to fleets; in part that was because the nation’s economy was in crisis, in part it was because the company had chosen to pull ahead about 25,000 fleet sales to December 2008 that had been scheduled for completion in January.

This January, fleet sales rebounded to about 42,000 units, comprising about 29 percent of GM’s overall sales for the month. That was above the 26 percent of sales that has been the average for the company over the last three years.

Still, the GM executives touted the relative progress they’ve been making in retail sales over the last several months, in large part due to strong consumer response to all-new or completely revamped models including the Chevrolet Equinox, Buick LaCrosse, Cadillac CTS Sport Wagon, Cadillac SRX and GMC Terrain.

“Our conquest rates are up” overall, Docherty said, “particularly in large products.” Moreover, she said, GM’s average incentive spending continues to decline while the industry’s continues to rise.

Ford paragraph up.jpgFord: Sales Jump – Thanks To Fleets

January’s overall sales hike of 24.1 percent for Ford Motor Co. looks sensational, but an outsized increase in fleet sales ran interference for stunted retail sales, which dipped about 5 percent, Ford officials said.

Nonetheless, sales were up for all Ford brands (including a hefty 41-percent spike at Volvo) – and every Ford model posted a sales gain in January. The Lincoln division hiked sales by 16 percent and even the Mercury unit improved sales by 6 percent.
And Ford sales officials crowed that market share improved to 16 percent for the month, perhaps as much as 2.5 points better than January 2009′s figure.

But one has to look no further down the sales sheet than to the pre-Cambrian Ford Crown Victoria’s 91-percent sales jump, or the Ranger’s 47.3-percent climb, to know fleet buyers are back in the game after delaying purchases throughout a shaky 2009.

Fleet sales accounted for a hefty 37 percent of Ford’s 116,277 total sales in January – a figure double last year’s 18 percent but a ratio more closely aligning to what chief of U.S. industry analysis George Pipas says will be a “pretty normal” industry-wide fleet-mix average of around 22 to 24 percent in 2010.

Ford’s fleet-heavy sales mix did not go unacknowledged by Ken Czubay, vice president, U.S. marketing, sales and service, underscoring the industry’s relatively meek month that seems to have palpably deflated hopes of putting together a consumer-rallying streak.

“January retail sales to (individual) customers were below our expectations,” Czubay said flatly. The current consumer mindset is all about the perception of there being good deals in the market, he added. In an unexpectedly strong December, Czubay said, buyers responded to what they believed were showrooms rich with attractive deals.

But January’s incentives were lower – at Ford and across the industry – so perhaps consumer perception about dissipating deals was “fueled a little bit by reality,” Pipas conceded. According to Edmunds.com’s proprietary True Cost of Incentives metric, Ford’s average incentive of $3,095 in January was up $55 compared with December, but the industry’s January TCI of $2,382 was notably lower than December’s $2,542, meaning an average of almost $200 less going to consumers.

2008 Ford Ranger - 200.JPGIn addition to the Crown Victoria and the Ranger, Ford’s top performers in January included the Fusion, gaining 49.3 percent, the Mustang, with a 61.2-percent improvement (possibly also fleet-driven) and the Focus, which climbed 33.7 percent.

Ford’s crossovers and trucks all gained, too, led by the Escape’s 28.6-percent increase, a 25.5-percent hike for the Edge and a 9.5-percent gain for the F-Series pickup. The old-school Explorer and Expedition even generated increases, 15.2 percent and 9.3 percent, respectively.

Although the Lincoln unit’s overall sales improved compared with January, 2009, the MKS and MKZ sedans were off by a troubling 16.6 percent and 14.2 percent, with the flagship MKS finding just 1,280 buyers. The MKX crossover rose 26.7 percent, though, and the Navigator somehow improved by 9.7 percent to 726 sales.

Mercury’s gain was driven by the 111.9-percent boost for the Grand Marquis (yes, grandma Mable, they still make it), a 12.1-percent improvement from the Milan sedan and 0.3-percent increase for the Mariner compact crossover. The rest of Mercury’s lineup consists of the Sable (nine units sold in Jan.) and the Mountaineer (-44.3 percent)

Toyota paragraph down.jpgToyota’s Not-So-Excellent January Adventure

Everyone knows the bad news for Toyota. The good news: it probably could have been worse.

Thanks, perhaps, to how late in the month the company’s recall of eight high-volume models came, Toyota’s January sales decline of 15.8 percent seems practically tolerable. Still, it was the company’s single worst sales month in 11 years.

Robert Carter, Toyota Motor Sales USA Inc.’s group vice president and general manager, Toyota division, said the final tally of 98,796 sales was about “23 percent below our internal target.”

Since he also added that sales of the other 11 Toyota-badged model lines not affected by the recall tracked roughly as the company projected, almost all of the decline from last January’s 117,287 sales total seemingly can be attributed to customers turning away from the Camry, Corolla, RAV4, Tundra, Matrix, Avalon, Highlander and Sequoia.

2009 Toyota RAV4 - 200.JPGThe recall didn’t stop the RAV4 from posting a 6.4-percent increase for the month, but it was the only recalled model to break for positive ground. The Camry, 2009′s best-selling model, dropped 17.7 percent, the Corolla, along with RAV4 also in the U.S.’s top-10 best-selling models, declined 3.6 percent; the Matrix, based on the Corolla, already is out of production. Avalon plunged 51.7 percent to a mere 944 sales.

Of the recalled truck models, the usually consistent Highlander slid 15.7 percent in January, Sequoia dove 56.2 percent and the Tundra was off 40.2 percent.

Other trouble spots included the Scion unit, with each of the brand’s three models dropping by double digits, and the small-car swoon was augmented by a 10.3-percent decline for the Yaris.

Toyota’s bright spot for the month was the Lexus premium division: sales were up 14.2 percent, bucking a lengthy slide for the luxury unit. The improvement was fueled by the addition of the HS hybrid, which contributed an incremental 1,247 units to the Lexus’ 15,517 January sales. The ES midsize sedan (+6.6 percent) and the LS flagship’s 30.9-percent turnaround performance made the two the only Lexus passenger cars to post a gain, however.

On the truck side, Lexus’ GX stepped out with an enormous 163.8-percent increase, countered by a 5.5-percent drop from the always-strong RX crossover.

It all added to a market share of 14.1 percent, according to analysts at Edmunds.com, Toyota’s lowest share inat least four years.

Carter insisted that, for now, Toyota’s not concerned with the sales charts. Fixing the 2.3 million recalled vehicles is the company’s first and only concern at the moment, he said.

First, Toyota’s taking care of the customers who own the affected vehicles, “then we’ll get back in the sales business,” Carter said. “We have the best dealers in the country, and they’re going to prove it,” by doing the best job possible to attend to the recall, he added.

Honda paragraph down.jpgHonda Hangs In

Regardless of economic conditions, Honda Motor Co. Ltd. rarely has had to struggle to connect with customers, but the market seems to be insistent on making Honda work harder to monetize its historically enviable brand image.

January was another month that left Honda essentially treading water. Not that many automakers wouldn’t happily take Honda’s 67,479 sales, but the total left Honda down 5 percent compared with last January. And with a few exceptions, performance from individual models was underwhelming.

Sure, the Accord broke out to a fine 35.6-percent gain that amounted to 20,759 units sold. The Civic held its ground with a 12.1-percent improvement, too.

2009 Honda Fit - 225.JPGBut Honda has to be wondering what’s going on with the once-hot Fit subcompact, sales of which have waned in recent months and dipped a fearsome 38.4 percent in January. The month is not known as one of the industry’s strongest, but even in that context, the Fit’s decline must be causing furrowed brows from Ohio to California to Tokyo.

The same can be inferred for the Insight hybrid; in January Honda moved just 1,307 of a vehicle initially projected to easily sell in the 7,500-per-month range. Unless gasoline prices balloon again sometime this year, the unloved Insight may have trouble hitting a quarter of the sales volume Honda envisioned.

The truck side of the business did not begin the year auspiciously, either. Every Honda-brand light truck was down for the month, led by the 33.4-percent slide for the Ridgeline, to a barely-breathing 738 units. The hoary Element trailed Ridgeline by two sales in January, a 30.8-percent slide. And even the dependable CR-V dropped a meddlesome 20.3 percent, while the blocky Pilot dropped 21.1 percent to sales of 4,865.

At the Acura upscale division, each of the brand’s three cars declined in January, led by the RL’s drop of 42.7 percent to an infinitesimal 110 units. Worryingly, perhaps, the midsize TL’s 1,986 sales outpaced Acura’s usual best-seller, the entry-level TSX, with just 1,806 sold in January, a drop of 18.7 percent compared with last year.

Acura’s MDX crossover was January’s saving grace, pushing to a 20.3-percent gain, while the RDX also had one of its better recent months, declining just 5.3 percent. Meanwhile, the all-new ZDX cross-whatever’s contribution of 172 sales can’t have too many Honda executives wondering what they’ll do with all the bonus money tied to Acura volume increases.

Nissan paragraph up.jpgNissan: Nose to the Grindstone

Nissan posted a 16-percent increase in sales in January, to 62,572 units compared with 53,884 units a year earlier. The results continued recent monthly gains for Nissan and moved the company at least temporarily into sixth place in overall U.S. auto sales, ahead of fast-dropping Chrysler Nissan Versa - 210.JPG.

At the same time, Nissan’s spending on incentives in January rose by an average of 14 percent per vehicle, according to Edmunds.com’s proprietary True Cost of Incentives formula. It rose about $200 to $2,455 from December 2009 to January, meaning that the company was still trying hard to “buy” sales in an overall January market that saw incentive spending ease.

“Nissan had a true sales increase,” noted Edmunds.com’s Caldwell, “but they had high incentive spending.”

The company’s gains were led by a 19-percent increase in sales of its Nissan brand. Sales of the Versa subcompact, for example, rose by 18 percent compared with a year earlier, to 5,914 units – setting a record for the month of January.

Other Nissan vehicles recording double-digit sales increases in January compared with a year ago were Armada, Maxima, Sentra, Altima and Frontier.

The Infiniti luxury marque struggled, however, with overall sales for January down by about 6 percent compared with a year ago in a U.S. luxury market that remains depressed. Sales of Infiniti’s M, EX and FX models plunged by high double-digit percentages compared with a year earlier.

Chrysler paragraph down.jpgChrysler: Searching for a Platform

Chrysler is going to advertise its poor-selling Dodge Charger during the Super Bowl telecast on Sunday, the first time in several years that any of the company’s products or brands have made an appearance. But the modest buzz around Chrysler’s re-entry into the Big Game is about the only thing the company is doing these days that could be construed as good news.

January sales brought more dismal results. Chrysler Group reported total U.S. sales for the month of 57,143 units, a decline of 8 percent compared with a year earlier. For a month in which other major competitors posted sales increases, Chrysler’s poor showing plunged it to sixth place overall among the U.S. auto market’s Big Seven – now, behind Nissan and ahead of only Hyundai.

2009 Dodge Journey - 210.JPG What’s more, Chrysler only tread water with the help of a big boost in fleet sales in January. “Chrysler is not getting a lot of retail interest in its vehicles right now, period,” said Edmunds.com’s Caldwell. “So until they get their new products out, or something to talk about, we can’t expect to see any positive results coming out of Chrysler – even with heavy incentives on their vehicles.”

The best highlight that Chrysler was able to muster was that its Dodge Journey crossover posted year-over-year sales gains in January for the third consecutive month. Also, the Jeep brand saw half of its lineup improve sales year-over-year, Chrysler said. And the Town & Country minivan saw sales jump by 6 percent while its Dodge Caravan counterpart saw sales rise 34 percent.

Meanwhile, sales of Chrysler’s once-stalwart 300 sedan plunged by 26 percent from a weak January 2009, and sales of its Charger and Dodge Challenger muscle cars declined by 47 percent and 39 percent, respectively.

“The company continues to make positive strides each month and that trend continued in January,” said Fred Diaz, president and chief executive officer of the Ram brand and lead executive for Chrysler’s overall sales organization. Diaz also pointed to Chrysler’s plans for “refreshed products and all-new models hitting the marketplace this year.”

Obviously, for Chrysler, they can’t come fast enough.

Hyundai paragraph up.jpgHyundai: Bolts For The Front

With January sales of 52,626, the Hyundai Group (the Hyundai and Kia brands combined) is putting together a run that soon may take it past sputtering Chrysler Group LLC and bring it within sight of Nissan Motor Co. Ltd.

Chrysler – the nation’s No. 6 seller – sold less than 5,000 units more than Hyundai in January. Nissan, despite its own 16.1-percent sales increase, sold less than 10,000 units more than Hyundai last month. Hyundai, with a string of new models in the pipeline, could give both traditionally larger rivals a genuine run this year.

2011 Kia Sorento - 300.JPGAfter all, Hyundai has rarely been shy about incentives, but in January, its incentive levels, measured by Emdunds.com’s True Cost of Incentives index, averaged $2,096 per vehicle -  almost $1,000 less than Chrysler’s ($3,061) and even markedly less than Nissan’s $2,455.

Hyundai’s potential surge is highlighted by the solid January breakout of the all-new 2010 Tucson, which bolted to 2,216 sales in an early-launch month. The number was a 128-percent increase over the old Tucson’s sales last January, Hyundai said.

Meanwhile, the Elantra compact car more than doubled sales, from 3,307 last January to 7,690 this year. The Accent subcompact also gained by a healthy 62 percent. The Genesis flagship improved by 58 percent. On the passenger-car side, only the building-out, current-generation Sonata lost ground, losing 62 percent.

Hyundai’s Santa Fe crossover gained by 43 percent, although the fullsize Veracruz dropped 66 percent to a paltry 401 sales.

In all, Hyundai sold 30,503 vehicles in January, while Kia kicked in with 22,123 sales.
Kia was led by a blistering performance from the new ’11 Sorento crossover, which found 7,398 buyers in January, more than Toyota’s Highlander (4,478), double Nissan’s Murano (3,648), and more than Ford’s Edge (6,243).

Incremental gains for Kia in January’s flat performance include 3,732 sales of the compact Forte and 2,145 units of the Soul hatchback.

VW/Audi: Running a Strong, But Distant No. 8

As the Big 7 automakers jockey for position, Volkswagen-Audi ranks as the No. 8 manufacturer selling vehicles in the U.S., albeit a distant No. 8. Combined, the brands sold 24,529 vehicles in January, up 40 percent from 17,466 in January a year ago. That gives them 3.5 percent market share.

Volkswagen contributed the bulk of those sales: 18,019 vehicles for a 41-percent increase. January 2010 marked Volkswagen’s seventh consecutive sales month of growth.

“We are pleased by the strong start to 2010,” said Mark Barnes, Volkswagen of America chief operating officer. “It’s encouraging to see so many of Volkswagen’s newest models continuing to gain momentum in the marketplace — namely the CC, Tiguan, Golf and GTI.”

Of Volkswagen’s total, Jetta stood as the sales leader with 8,893 vehicles sold. CC sales soared 76 percent to 1,891 units. Tiguan sales skyrocketed 87 percent to 1,424 vehicles. The Routan minivan, made by Chrysler, had a 6 percent increase. Even the old New Beetle had a shopping 173 percent increase in sales that totaled 2,167 vehicles. The new Golf and GTI are just hitting the market. Passat sales, however dropped by a third. Volkswagen sold 2,447 diesels in the month.

2010 Audi A3 - 250.JPGAudi sold 6,510 vehicles for a 38-percent increase over a year ago, giving the Germany luxury brand added momentum after a strong December.

“Having ended 2009 on such a high note, it was important to ensure that our success was substantive and enduring,” said Audi of America President Johan de Nysschen. “January sales figures reinforce the notion that our momentum is the byproduct of relentless innovation years in the making.”

Audi A3 sales jumped 106 percent, largely due to the availability of the A3 TDI clean diesel model. Audi had a strong month for diesels: half of A3 sales were diesels, 48 percent of Q7 sales were TDI. Audi said that level of demand far exceeds original expectations for TDI sales when Audi introduced the two models last year.

Sales of the Audi A4 sedan, the brand’s bestseller, rose 60 percent. Other A4 variants rose 34 percent. Audi A5 sales were up 74 percent to 1,051 vehicles; Q5 sales rose from last year’s 31, when it was just introduced, to 1,050 vehicles.

Audi still has its laggards. It sold a scant 52 units of the soon-to-be-replaced A8 for a 45-percent drop, only 43 R8s for a 60-percent decline, and 103 TTs for a 34-percent drop. A6 sales declined 35 percent to 507 units.

Mazda Holds Its Ground

Mazda North American Operations posted an essentially flat January, with sales up 1.8 percent to 15,694 vehicles. Mazda held 2.2 percent market share

The brand’s Mazda3 compact car was the volume seller at 7,368 units, but the number represented a 3.7-percent drop compared with January 2009.

Mazda’s top gainer in January was the CX-7 crossover, which increased 39.3 percent to 1,622 sales. The Mazda5 mini-minivan rose 21.4 percent and the Mazda6 sedan rounded out the brand’s improving sellers with a 14-percent gain.

Sales dropped a heavy 41 percent for the RX-8 sportscar to a demoralizing 92 total units, while winter was slightly kinder to the evergreen MX-5 roadster, which declined 15 percent. The Tribute compact crossover slid 42.1 percent and the fullsize CX-9 crossover dropped 12.8 percent.

Subaru: Records Shattered – Again

2010 Subaru Outback - 250.JPGAfter a gravity-defying performance in 2009, Subaru continued to shatter its own records and sped past other makes by reporting a 28-percent sales increase over January 2009. Subaru sold 15,611 vehicles in January 2010, compared with 12,194 units sold in January 2009. That pushed Subaru’s market share to 2.2 percent, up from last January’s 1.9 percent.

January’s surge also allowed Subaru to clinch the No. 9 sales spot in the U.S., speeding past Daimler brands’ Mercedes and smart as well as BMW and Mini combined. In 2009, Subaru handily whipped Mercedes-Benz in sales but the BMW brand still sold more vehicles than Subaru. In 2010, Subaru outpaced both BMW Group and Daimler.

Leading the charge were Subaru’s newly redesigned Outback and Legacy, which posted their best January sales ever. At 5,467 sold in January, the Outbacked doubled sales from 2009. Likewise, Subaru sold 2,448 Legacy models, also double what it sold a year ago.

Forester sales retreated slightly – 4 percent – from its 2009 blistering pace. Impreza sales were off 15 percent; Tribeca sales fell 38 percent to a mere 256 units sold.

Daimler: Mercedes Gets No Help from Smart

Daimler AG eked out a narrow lead over rival BMW with Mercedes-Benz and smart sales totaling 15,436 vehicles, a 26-percent climb from a year ago that gave the company 2.2 percent of the U.S. market.

But smart was no help. The relative newcomer to the U.S. sold a scant 278 fortwo vehicles in January, an 84-percent plummet from the 1,776 sold in the year-ago January.

In contrast, Mercedes-Benz saw sales soar 45 percent to 15,158 vehicles. The C-Class returned as Mercedes’ volume seller – 4,028 sold for a 33 percent rise from a year ago. The new E-Class wasn’t far behind, knocking in 3,824 units for a 166-percent hike.

Also posting beefy double-digit increases were: S-Class; SL-Class; M-Class; G-Class; GL-Class; and GLK-Class. And Mercedes sold 436 Sprinter cargo vans, which previously was sold by Dodge but is no longer due to the split of Daimler and Chrysler.

Posting equally hefty double-digit declines were the CL-Class, CLK-Class, SLK-Class, CLS-Class and R-Class.

BMW Group: BMW, Mini Off to Good Start

The BMW Group, including the BMW and Mini brands, sold 15,410 vehicles in January, a nearly 8-percent increase from a year ago. That gave the BMW group a 2.2 percent market share.

In contrast to Daimler’s smart, Mini, which had its own struggles in 2009, came out of the doldrums, posting sales of 2,247 vehicles, up 8 percent from a year ago.

BMW sales rose nearly 8 percent to 13,163 vehicles. BMW car sales rose 15 percent. The new 7-Series chipped in 1,300 sales. Still, car sales were offset by 12-percent decline in SUV sales.

“Traffic in our showrooms was a bit sporadic this month, but combined with a strong December we are delighted to see a positive January gain,” said President of BMW North America Jim O’Donnell.

Mitsubishi Slides

Mitsubishi sold 4,170 vehicles in January, a slight decrease fro last year’s 4,730 vehicles. It’s market stood at 0.6 percent.

Mitsubishi said Galant sales rose 22 percent from a year ago, Endeavor sales were up 128 percent from then and Outlander sales were about even with a year ago.

Jaguar/Land Rover Sales Dip

Jaguar Land Rover North America was one of the few manufacturers to report lower sales this January than last. The company sold 2,589 vehicles, down 3 percent last January. The brands combined hold 0.4 percent market share.

The drop was caused by lower Jaguar sales. The automaker sold only 631 Jaguars, down 19 percent from 781 sold in January 2009. The Jaguar XK bucked the marque’s trend with sales up 41 percent to 138 units. Still the XF and XJ, which is being wound down, dropped.

Land Rover sold 1,958 vehicles, up 4 percent from a year ago. Ranger Rover Sport, for the second consecutive month, had a sales increase – 46 percent to 823 units. LR4 sales were up 12 percent. Range Rover and LR2 sales were down double digits.

Suzuki Plunges 44 Percent

Despite gains of 5 percent for the Grand Vitara crossover, 12 percent for the SX4 lineup and even a 97-percent jump for the Equator pickup, American Suzuki Motor Corp.’s total sales still dropped 44 percent compared with last January. Suzuki sold a total of 2,040 units last month for a 0.3 percent market share.

The tiny brand couldn’t overcome the 978 sales lost from the discontinuation of the Forenza/Reno line or the 1,000 units-plus gone with the XL-7 crossover.

Those losses could not be made up by the meager 197 sales for the all-new, recently launched Kizashi sedan, a performance that cannot be encouraging for Suzuki or its enthusiasts. The Kizashi went on sale in early December last year and sold 71 units in its first month on the market, so January’s 197 sales did represent a 270-percent month-over-month gain.

Panamera Sales Move Porsche Forward

After a rough 2009, Porsche sales edged higher in January compared with a year ago.
The sports car maker sold 1,768 vehicles in the U.S. for an 8-percent increase and a 0.3 percent market share.

The rise came on the strength of the new Panamera. Porsche sold 534 of them. Sales of the rest of Porsche’s models were down significantly.

“In this environment, we are very pleased with the sales performance of our new Panamera, which continues to build up market share,” said Detlev von Platen, Porsche Cars North America’s president and CEO. “Even though we see a small ray of sunshine in consumer confidence, the luxury car segment remains challenging, especially for sports cars.”

Toyota U.S. sales fall 16% in Jan.; Ford, GM, Nissan UP

JANUARY U.S. AUTO SALES
Toyota sales fall 16% in Jan.; Ford, GM, Nissan rise

Toyota Motor Sales U.S.A. Inc., hobbled by suspended sales on eight recalled models, suffered a 16 percent drop in January demand while most competitors rose from depressed levels of a year ago.
U.S. sales at Toyota Division, which markets each of the recalled models, fell 19 percent. The Lexus luxury division, which wasn’t targeted in the Jan. 21 recall, gained 5 percent.
Sales at Ford Motor Co. jumped 25 percent — the company’s fourth straight monthly increase. General Motors Co. was up 14 percent, while Chrysler Group, the other survivor of a 2009 bankruptcy, fell 11 percent. In unit sales, Chrysler fell behind Nissan North America, which advanced 16 percent. American Honda slipped 5 percent.
Subaru, the only brand with U.S. sales gains in each of the past two years, began 2010 with a 28 percent sales jump.
Shinichi Sasaki, Toyota’s vice president in charge of quality, said today in Japan that the automaker’s sales probably will take a hit. On Jan. 26, Toyota halted U.S. sales of eight models following a recall of 2.3 million vehicles tied to faulty accelerator pedals.

TrueTrends Report: Top 2009 and 2010 vehicles with the heaviest discounts

SANTA MONICA, Calif. — During this time of year, when the auto market is in the midst of a traditionally slow season and automakers are less apt to offer incentives, dealers are often more inclined to include discounts to help spur sales, according to TrueCar.

In light of this environment, TrueCar, as part of its monthly TrueTrends Report, announced the top 2009 and 2010 vehicles with the heaviest discounts, and showing a dominant presence on both lists were Big 3 brands.

Specifically, three Chevrolet models (Cobalt, Silverado 1500, and Corvette) were among the five models listed on the Top 2009 Greatest Discounted Models, a list that the Dodge Ram 1500 topped with an average discount of 27 percent.

The Kia Sorrento was No. 2 with a 23-percent discount, while the Cobalt was No. 3 (20 percent) and the Silverado 1500 and Corvette (17 percent) were tied for fourth.

Meanwhile, on the list of Top 2010 Greatest Discounted Models, three of the five vehicles were from Ford, including the Ranger, which led the way with a 17-percent discount.

The Edge was tied for third with a 13 percent discount (tying with the Toyota Tundra 2WD), while the Focus had the fifth-highest discount at 12 percent. Another domestic on the list was the Jeep Grand Cherokee, whose 16-percent average discount put it second.

“January is historically a very slow month for dealerships in terms of sales,” said Jesse Toprak, vice president of industry, trends and insights for TrueCar.com. “The manufacturers typically offer fewer incentives to consumers so the dealers are much more willing to offer discounts off of MSRP to help make more deals.”

He added: “So January could actually turn out to be a really great month for consumers who do their homework before they buy, as dealers are more motivated to make something from nothing.”

The complete top five lists are as follows:

Top 2009 Greatest Discounted Models

1. Dodge Ram 1500, 27 percent

2. Kia Sorrento, 23 percent

3. Chevrolet Cobalt, 20 percent

4. Chevrolet Silverado 1500, 17 percent

5. Chevrolet Corvette, 17 percent

Top 2010 Greatest Discounted Models

1. Ford Ranger, 17 percent

2. Jeep Grand Cherokee, 16 percent

3. Toyota Tundra 2WD, 13 percent

4. Ford Edge, 13 percent

5. Ford Focus, 12 percent

Moving on, TrueCar also unveiled in the report the Most Flexible Vehicles 2009 and 2010 models, which are calculated by its Price Flex Score. This considers various elements that can impact price variance, officials noted, such as transaction price range, current inventory and sales data.

Based on these scores, the most flexible 2010 model is the Chrysler PT-Cruiser with a score of 93, followed by the Mazda MX-5 Miata (90), Mazda 6 (88), Hummer H3 (86) and the Hyundai Accent (85).

For 2009 models, the H3 and MX-5 Miata were the most flexible, as both had scores of 97. The Dodge Viper was next (91), with the Volkswagen New Beetle (90) and Volkswagen EOS (89) rounding out the top five.

Moving on, TrueCar also unveiled what it has calculated to be the best day to buy a vehicle in the next 31 days. According to its data, Feb. 1 is the top day. TrueCar expects discounts to be 6.62 percent.

However, Jan. 25 and Feb. 8 are also projected to have discounts of more than 6.5 percent. Meanwhile, the lowest day for discounts is expected to be Feb. 9, when the average is projected at 5.42 percent.

Next, TrueCar looked at what new vehicles are staying in dealers’ inventories for the longest and shortest periods of time.

For 2009 models, the Acura MDX has had the shortest days on the lot, averaging 27. Meanwhile, the Saab 9-3, on average, has sat on the lot 358 days.

“Apparently, fears of becoming an orphan owner have kept consumers away from the Saab, with the 2009 9-3 averaging nearly a year in inventory,” officials explained.

Meanwhile, among 2010 units, the Lexus GX 460 ranks at the top of fastest turn rates, as it typically spends only five days on the lot, according to TrueCar. The Kia Forte has the longest time in inventory, averaging 72 days, officials added.

HYUNDAI DOUBLES CO-OP AD MONEY FOR 2010

HYUNDAI DOUBLES CO-OP AD MONEY FOR  2010

Hyundai, one of only three brands to increase saleslast year, will try to sustain its momentum by making more advertising money available to its dealers.Automotive News reports that regional ad associationand individual dealer co-op advertising willget big increases this year, said DaveZuchowski, head of sales at Hyundai MotorAmerica.“We’re doubling co-op money this yearfrom last year and significantly increasingregional, yet not backing down from national,”Zuchowski said.Zuchowski says co-op money willincrease from $25 million in 2009 to $50million this year. He says funds going to theregional ad associations this year will rise by about 35%.“We’re now spending about $2 for every $1 the dealersspend” on regional ads, Zuchowski said.Dealers will play an important role next month asHyundai debuts a redesigned version of the Sonata, itslargest-volume car. Hyundai will spend about $160 millionto bring out the Sonata — the most it has spent on a vehiclelaunch — and it wants the dealers to chip in at the regionaland local levels.

U.S. vehicle sales point to uptick

Automakers emerging from the worst year since 1970 are cautiously optimistic that a recovery is under waylast year’s collapse in U.S. auto sales.executives and analysts said Tuesday they expect car and light truck sales to rise to 11.5 million orthis year from 10.4 million in 2009, bolstered by a strengthening economy.

The most bullish analysts forecast sales exceeding 13 million vehicles — still far below the market’s peak of 17.4   million at the start of the last decade when business was booming for Detroit’s Big Three

“Normalcy is about two years away,” said Jesse Toprak, an auto analyst at pricing and sales forecaster Truecar.com.

The slide in sales began in 2005 and accelerated in 2008, driving two of Detroit’s automakers into bankruptcy last year and pushing their Japanese archrival Toyota Motor Corp. into the red for the first time since 1950.

But executives were encouraged by December’s sales, which marked the fourth consecutive monthly increase in the annualized selling rate. Automakers also reported strengthening demand for both large and small vehicles.

“We’re now in a recovery stage,” said Ellen Hughes-Cromwick, chief economist at Ford Motor Co., which reported a big jump in December sales.

Consumers are feeling encouraged by positive economic news and rising financial markets, Hughes-Cromwick said. “It will take clear evidence of job and income gains to declare a full recovery, and we think that’s likely to gel in this quarter,” she said.

Many executives remain cautious but few still worry about a dreaded double-dip recession. “For the most part, we’ve ruled that out,” said General Motors Co. global industry analyst Mike DiGiovanni.

But, he said, consumer confidence is fragile, oil prices may rise as the global economy expands and the U.S. jobless rate is likely to remain around the 10 percent mark next year. “So we have to balance our optimism with some caution about the outlook for 2010.”

GM ended a tumultuous year — and decade — as the U.S. market leader, which was encouraging, DiGiovanni said, “given all we’ve been through, with bankruptcy and restructuring.”

But over the past 10 years, GM and Ford have lost a big chunk — more than 14 points — of the U.S. auto market.

Toyota and other Asian automakers were the biggest gainers, but the European automakers also made quiet headway. European brands nearly doubled their combined share of the U.S. auto market to 8.4 percent in 2009 from 4.9 percent in 2000.

“This race can get even tighter,” predicted Jessica Caldwell, an analyst at online auto research site Edmunds.com. “You really saw GM lose some ground to Toyota in 2009, but Toyota has lost a lot of ground to Ford.”

Domestics geared to compete

Although 2009 was a terrible year for the domestics, they will be more competitive against foreign rivals this year and next after slashing their costs, shedding debts in government-directed bankruptcies and restructuring operations and dealer networks.

Ford — the only U.S. automaker to avoid bankruptcy in 2009 — was the best performer among the domestics in December. It reported a stunning 33.5 percent jump in sales, its biggest monthly gain since March 2008.

The Dearborn automaker said demand improved across its model range, with sales of both the Fusion compact and F-Series full-size pickup showing double-digit gains last month.

For both December and the year, the F-Series was the best-selling vehicle in the market, followed by Toyota’s Camry sedan.

GM reported a drop in monthly sales, but its executives noted that GM’s fleet business was down in December, while Ford said sales to fleet customers surged more than 70 percent.

Automakers typically prefer retail sales through dealerships to fleet sales, which have thinner profit margins, but Ford executives welcomed fleet customers.

“It suggests that an important sector of the economy, namely the business sector, is becoming more optimistic,” said George Pipas, Ford’s sales analyst. It also signals greater availability of credit; a credit squeeze had sharply curtailed sales in 2009.

Chrysler Group LLC didn’t release a breakdown of fleet and retail sales but its rivals and analysts said much of the Auburn Hills automaker’s business was with fleets. “We estimate they sold 50 percent to fleets, which is an astronomical number,” said Caldwell of Edmunds.com.

A Chrysler spokeswoman would not comment on the December results but said fleet business was expected to account for 25 percent of its annual sales.

Chrysler’s December sales were down 3.7 percent. For the year they fell 35.9 percent — the biggest decline posted by any major automaker — to less than a million vehicles, the lowest sales since 1962. Honda Motor Co. moved ahead of Chrysler in December, to become the fourth-largest player in the market.

Wes Lutz, owner of Extreme Dodge Chrysler Jeep in Jackson, said he is glad 2009 is over. “How could you get worse than that? How much more downsizing can you go beyond bankruptcy?”

But his December sales were better than last year, and he said he expects January to be stronger and the year to continue to improve.

Toyota reported a 32.3 percent increase in sales in December, and said it led the market in retail sales. But its sales were down 20.2 percent in 2009, which was a bad year overall for the Japanese automaker. It lost money in the United States, where it now has too much production capacity, and it recalled more vehicles for safety issues than any other automaker.

Hyundai Motor Co. and its Kia Motors affiliate were the only major automaking group to record a sales gain in the U.S. last year. Their share of the market increased to 7.1 percent from 5.1 percent a year earlier and 2.3 percent in 2000.

Cautious optimism

Outside the auto industry, economists expect 2010 to show slower growth than last year, with unemployment continuing to rise and peaking in the first six months.

Interest rates are expected to stay low until job growth picks up but a full employment recovery will take years.

Analysts and economists say that in addition to the emerging economic recovery, auto sales in December were helped by two additional selling days in 2009 and a tax deduction for car purchases included in the U.S. government’s economic stimulus measures.

Sales are likely to benefit from pent-up demand from consumers holding on to old cars because of economic and job worries.

Skittish consumers have been saving and scaling back spending as the new frugality of the economic bust replaces the free-spending consumer culture of the last decade’s earlier boom.

Auto analyst John Murphy at Bank of America-Merrill Lynch predicted Tuesday that demand for light vehicles would rise in 2010 to “a more normal low” of around 13.3 million units.

But most auto executives remain cautious after having overestimated demand for 2009, when sales ended up 21.2 percent lower. While GM’s end-of-year forecast of 10.5 million vehicles was close to the mark, Ford and Chrysler’s forecasts were considerably higher.

By February, the annualized selling rate slumped to a previously unthinkable 9.1 million cars and light trucks, the year’s low point.

According to Edmunds.com, sales last year fell to the lowest since 1970, when, Edmunds said, there were 70 million fewer people in the United States.

“For 2010, I’m leaving my seat belt on,” said Ford Vice President Ken Czubay, “because I think volatility will be part of the new norm.”