The automotive industry experienced something of a recession within a recession when the global economy plunged, compounding an already depressed outlook for the sector. Last year's industry sales of vehicles fell 21.2 percent, to 10.4 million, compared with 2008 as the recession took its toll, according to Autodata.

Yet some automakers ended one of their worst years in decades on a positive note, as December auto sales surged 15.1 percent from the same month in 2008. Others, however, are still sputtering.

Ford Motor Co., which did not take a federal bailout, led the December 2009 charge, breaking further away from its still-struggling Detroit rivals. Ford's sales last month jumped 32.8 percent, to 183,701 vehicles, compared to December 2008. Last month marked the automaker's best monthly sales results since May 2008. Truck sales in December rose 29.8 percent, to 120,369, while car sales jumped 38.8 percent over the same month a year earlier, to 63,332. Total Volvo sales for the month rose 13.8 percent, to 5,638, compared to December 2008.

Ford said it has improved its retail market share 14 times in the last 15 months. The company said its share of the U.S. market last year grew by more than a full percentage point to 15 percent, the first time Ford has gained annual market share since 1995. Yet it remains far below the company's 24.5 percent share of auto sales a decade ago.

"Ford's plan is working," Ken Czubay, Ford VP of U.S. Marketing Sales and Service, said in a statement. "Customer consideration continues to grow for our high-quality, fuel-efficient vehicles."

Despite the year-end increase, Ford's total 2009 sales of cars and light trucks declined 15.3 percent from 2008, to 1,677,234.

Meanwhile, Detroit rivals Chrysler LLC and General Motors Co., both recovering from stints in bankruptcy, sold even fewer cars in December than the previous year, when the market seemed to be in freefall.

According to Autodata, Chrysler's December sales fell 3.7 percent, from 89,813 vehicles in December 2008 to 86,523 last month. The Detroit automaker's sales of cars increased 30.9 percent to 26,830 and light truck sales fell 13.9 percent to 59,693.

"Chrysler has lagged behind its rivals all year, but its drop in December sales to 86,523 was an improvement over its sales plunge of 35.9 percent for the year to 931,402 — the first time since 1962 that Chrysler sold fewer than 1 million vehicles," the Los Angeles Times reported, noting that Chrysler is now managed by Italian auto giant Fiat.

For General Motors, data were mixed. Although end-of-year sales dropped 5.7 percent, the automaker held the top spot last month, with 207,538 vehicles sold in December. GM's sales for all of 2009 fell to 2,071,749, down 29.9 percent from 2008.

"The year 2009 was a watershed year for us in many ways. From our dealer restructuring to our focus on Chevrolet, Cadillac, Buick and GMC, we have made the difficult but necessary decisions to position our new company for success," Susan Docherty, GM VP of Sales, Service and Marketing, said in a statement. "We're looking forward to 2010 as a year when the economy continues a modest recovery, industry sales begin to improve and our outstanding new products build additional sales momentum."

After the bailouts of GM and Chrysler, the government initiated a $3 billion "cash for clunkers" program to revive sales with government-backed rebates; in the end, 690,000 vehicles were traded in under the program. Yet, as the U.S. market collapsed, Asia's surged.

"Led by Toyota and Hyundai, Asian car companies finished 2009 ahead of Detroit in the U.S. for the first time," Bloomberg News reported. "Japanese and South Korean companies raised sales last month 26 percent from a year earlier."

Toyota Motor Co.'s sales in December rose to 187,860 units, a 32.3 percent increase over the same month a year earlier. The Japanese automaker's car sales rose 43.8 percent, to 113,984 units, and light trucks increased 17.8 percent, to 73,876 units, over December 2008. Sales for 2009 fell 20.2 percent, to 17.70 million.

Honda Motor Co. sales last month increased 24.5 percent, to 107,143 units, compared to the year prior. December sales of cars increased 19.8 percent, to 61,020 units, and sales of the company's light trucks rose 31.2 percent, to 46,123 units, compared to the same month in 2008. For all of 2009, sales declined 19.5 percent, falling to 11.51 million.

Nissan Motor Co. vehicle sales last month increased 18.2 percent, to 73,404 units, from 62,102 units a year ago. December car and light truck sales rose 22.4 percent and 11.3 percent, respectively, from year-ago levels. Nissan's sales for all of 2009 declined 19.1 percent.

"The new champ is Hyundai of Korea, which will continue to surprise people in 2010," according to Forbes.

Hyundai Motor America monthly sales rose 40.6 percent to 33,797, and its total-year sales rose 8.3 percent in 2009. Sales at sister company Kia Motors America jumped 43.7 percent to 21,048 in December, finishing the year with a 9.8 percent increase over total 2008 vehicle sales.

Meanwhile, China said it has overtaken the U.S. to become the world's largest auto market in 2009, a total of 10.3 million passenger cars having been sold in the country. This marks a 52.9 percent rise over the year prior. Data provided by the China Association of Automobile Manufacturers showed that 13.6 million vehicles were sold within the country last year, "well above the country's previous target of 10 million units," Reuters reported.

Yet, following multiple bankruptcies on top of another year of recession, small hints of optimism are beginning to show across the U.S. auto industry on the heels of the December auto sales surge.

"The vital signs are improving for American automakers," as there are "signs of increased confidence that the U.S. auto market bottomed out last year and will improve in 2010," the Associated Press said.

Agence France-Presse last week reported that "a new sense of optimism filled the Detroit auto show Monday as the industry looked forward to a recovery from one of its worst years on record."

"The start of the Detroit auto show was a day for looking ahead with hope," where "automakers talked about the production they're adding back for hot-selling models," according to the Detroit Free Press.

Both the Wall Street Journal (subscription required) and AP reported that Ford, GM and Chrysler are considering hiring new employees, anticipating a recovery in vehicle demand. GM is considering reopening some closed factories and Chrysler is planning to hire more engineers and product development workers.

At the start of the year, Barclays Capital Research released a report suggesting, "The industry is witnessing a real improvement in underlying consumer demand for U.S. autos." (Source: Reuters)

While things are improving for some automakers, the recovery is slow.

"The worst is over for the U.S. auto industry. Now the recovery begins," according to Forbes. "The question is how quickly it will happen."

Earlier

General Motors Concludes Whirlwind Bankruptcy

Chrysler Officially Exits Bankruptcy

"Cash for Clunkers" Closes Out

How is Detroit Faring against Asian Automakers?

Resources

U.S. Light Vehicle Retail Sales - December 2009 (Final Results)
AutoData.com, Jan. 5, 2010 (revised)

Ford Caps 2009 with ... First Full-Year Market Share Gain Since 1995
Ford Motor Co., Jan. 5, 2010

Most Automakers Report Boom in December Sales
by Jerry Hirsch
The Los Angeles Times, Jan. 6, 2010

Chevrolet, Buick, GMC and Cadillac Post Sales Gains
General Motors Co., Jan. 5, 2010

Toyota U.S. Sales Jump 32%; Hyundai Leads Asian Gains
by Alan Ohnsman
Bloomberg News, Jan. 6, 2010

Joann Muller On The Auto Industry
by Joann Muller
Forbes, Dec. 21, 2009

Factbox-China Overtakes U.S. as World's No.1 Auto Market
Reuters, Jan. 11, 2010

Finally, US Automakers Start to See Improvement
by Tom Krisher
The Associated Press, Jan. 11, 2010

Optimism at Detroit Auto Show as Industry Banks on Recovery
by Mira Oberman
Agence France-Presse, Jan. 11, 2010

'What We are Seeing Here Today is a Renaissance'
by Justin Hyde
The Detroit Free Press, Jan. 11, 2010