New year, same result

Hyundai, Subaru and Kia were the only winners in the US car market in January. They were the only three companies to record a sales increase over January 2008 as the financial crisis continues to leave the auto industry feeling the pain.

Uncertainty over jobs, a lack of credit and doubts of the future of the country's auto industry saw sales fall for the 15th consecutive month. Only 656,976 vehicles were sold in the month compared to over one million in the first month of 2008.

But it wasn't all doom and gloom.

Hyundai sales were up 14.3 per cent over the same period last year. Much of that credit must go to its Assurance program that gives customers the option of returning their car if they loose their job within 12 months. The program was announced in December and had an immediate impact on buyer interest in the South Korean brand. Another factor was the Genesis sedan being named North American Car of the Year which represents a major breakthrough for the company's image in the USA.

In a clear sign that the South Korean brands are gaining increased acceptance in America, Hyundai's subsidiary, Kia, recorded sales 3.5 per cent up on January 2008.

Subaru sales were up 8.0 per cent as the company continues to develop outside its traditional markets. The all-wheel drive company has had established a strong presence in the 'snow markets' but the new Impreza and Forester models have also performed well outside those areas.

Once again the Big Three -- General Motors, Ford Motor Company and Chrysler LLC -- all struggled through the month. Chrysler LLC was the worst affected by the conditions recording a 54.8 per cent drop on the same month last year. GM was next up with a 48.8 per cent drop while Ford was 40.2 per cent down. Toyota also felt the pain with a 31.7 per cent drop.

As far as individual brands go Chrysler fared the worst dropping a massive 68.9 per cent over last January while Volvo also struggled and recorded a 63.8 per cent slide. The brand of the Pentastar has put the hard word on dealers, pleading with them to take more stock, according to a report last week in American industry journal, Automotive News. Chrysler's co-President, Jim Press (pictured), was quoted as saying: "You can either help us or burn us all down". 70 per cent of Chrysler dealers committed to ordering 78,000 units of stock the company had built for January and February retailing. Nonetheless -- and in spite of moves to seek succour in the arms of Fiat (more here) -- the company's still in a dire predicament.

And uncertainty surrounding GM's plans for Hummer, Saturn and Pontiac didn't help sales for those brands either, with the brands down 59.9, 59.8 and 60.6 per cent respectively.