U.S. auto sales plunge in December

Chrysler LLC's December U.S. sales plunged by more than half, and it sold 30 percent fewer vehicles in 2008. Those results far exceeded the steep declines at the other major automakers.

Chrysler said yesterday that its December sales dropped 53 percent because of the recession and fewer fleet sales.

The auto Web site Edmunds.com predicted that major automakers' sales for the full year will total just over 13 million, down 18 percent from 2007 and the lowest level since 1992.

In Virginia, 2008 sales were down 21.3 percent, according to the Virginia Automobile Dealers Association. For December, sales were down 38 percent from December 2007.

H. Carter Myers, former chairman of the National Automobile Dealers Association and the owner of 12 automobile franchises in Virginia, said his business was down 33 percent in December.

To get through the difficult periods, Myers said dealers must continue to adjust how they do business.

While his parts and service departments have maintained their performance, the drop in sales has forced him to cut sales personnel 18 percent. He also has cut debt and inventory.

"If you don't have a big debt load or expensive rental structure, you might make it," Myers said. "But I think we're going to lose a lot of good dealers."

Toyota said sales of the Prius hybrid dropped 45 percent as gas prices fell from their record highs in July.

Chrysler said it December drop included a 63 percent decrease in fleet sales.

GM results were boosted by heavy sales incentives, including financing offers announced near the end of the month after the Treasury Department said it would give $5 billion in federal aid to GM's ailing financing arm, GMAC LLC.

The sales slump continues to mean good deals for consumers, analysts said.

One automaker, Hyundai Motor America, is trying to woo buyers by promising to let them return cars free for up to a year if they lose their jobs and can't make the payments.

The "Hyundai Assurance Program" applies to customers stricken by misfortune outside their control, such as losing their job, becoming disabled or losing their driver's license for medical reasons. It covers depreciation up to $7,500.

George Hoffer, an economics professor at Virginia Commonwealth University, said the only encouraging signal he sees from the double-digit sales drops will come this spring, when comparable sales won't look nearly as bad as they do now.

Staff writer Louis Llovio and The Associated Press contributed to this report.