December auto sales open door to recovery in ’10

MarketWatch

SAN FRANCISCO — One of the most brutal years in the history of the automotive industry has drawn mercifully to a close, and a relatively strong December of U.S. sales could very well set the stage for a recovery in 2010.

“The best thing that might be said about the year the auto industry — and an economically battered nation — is preparing to close: it probably can’t get any worse,” said Bill Visnic, senior editor at car-buying research Web site Edmunds.com.

Bankruptcies for General Motors and Chrysler, thousands of job losses and dealership closures, the looming death of several high-profile brands and some costly potholes for Toyota Motor Corp. all combined to make 2009 a year to forget.

But the first sign that 2010 could be a year of healing will arrive on Tuesday when automakers hand in their monthly and year-end tallies.

Analysts are expecting double-digit improvements for the group in comparison with both the prior month and a year ago, led by another set of strong numbers from Ford Motor Co. and the Asian manufacturers.

Ford has continued to benefit from a relatively fresh lineup along with the goodwill it earned from avoiding bankruptcy and declining a federal bailout.

Chrysler and General Motors, on the other hand, are seen as the only two decliners from a year ago, though a last-minute fire sale at Pontiac and Saturn could help boost GM’s final sales numbers.