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1/5 Detroit - Ford Sales Surge, Chrysler Crumbles

Automakers in the U.S. ended their worst year in almost three decades with hints of a recovery in December. Many, especially those selling small or inexpensive vehicles, reported improvements last month and expressed hope for a mildly better 2010.

It was a positive finish to one of the toughest years on record for the industry, with U.S. sales of cars and light trucks down 21% to 10.4 million as drivers blew past showrooms due to a shaky economy.

For the year, General Motors Co. and Chrysler Group LLC were the big losers. Both took government aid and spent time in bankruptcy court early in the year when sales fell to near-record lows as credit froze, unemployment rose and consumer confidence plunged.

Big winners were Hyundai Motor Co. and its low-cost Kia brand, as well as Subaru, which specializes in all-wheel-drive small cars and sport utility vehicles. Ford Motor Co., Honda, Toyota and Nissan all reported drops for the year but big gains last month.

Ford, the only U.S.-based automaker to avoid bankruptcy protection, fared better than its two Detroit rivals, with overall sales down 15% last year compared with 36% fewer for Chrysler and 30% for GM.

In fact, Chrysler sold just 931,000 cars and trucks in 2009, its worst performance since 1962 as it struggled with a lack of new products and a reputation for poor quality. It had a better December, however, down only 4% from the same month last year. GM sales fell 5.7% last month as it tried to find traction with fewer brands after shedding Saturn, Saab and Pontiac and Hummer.

Ford's final month of the year was strong, with a 33% increase in sales thanks to strong demand for midsize cars. Last year, it gained U.S. market share for the first time since 1995, helped by critical raves for its fuel-efficient cars, like the midsize Fusion. Its compact Focus and popular Escape crossover also boosted sales.

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