Business torrents

General Motors Corp. and Ford Motor Co. said U.S. sales plummeted at least 40 percent in January, and Toyota Motor Corp. dived by almost a third, dragging the world’s biggest auto market to the worst month since 1981.

U.S. industry-wide deliveries tumbled 37 percent to 656,976 as the recession ravaged demand. That translates into an annual rate of 9.6 million after an average of more than 16 million vehicles in this decade.

Job losses and dwindling consumer confidence add to the challenges for GM and Chrysler while they work to restructure with $17.4 billion in federal loans, and ratchet up pressure on Ford, which says it doesn’t need government aid.

January sales plunged 55 percent at Chrysler; 49 percent at GM, the largest U.S. automaker; and 40 percent at No. 2 Ford. Toyota dropped 32 percent, Honda Motor Co. fell 28 percent and Nissan Motor Co. was down 30 percent.

The annualized sales rate was the lowest since December 1981, according to Autodata Corp. of Woodcliff Lake, N.J. The last full year of fewer than 10 million sales was 1970, according to trade publication Automotive News.

GM said it was the first time the sales rate and volume in the United States were less than in China, which had a rate of about 10.7 million vehicles and unit volume of about 790,000.

Hyundai Motor Co. was alone among large automakers with a gain, saying U.S. sales rose 14 percent. Hyundai, based in Seoul, began promoting a program last month that lets customers return their cars in the event of a job loss cash advance no credit check.

U.S. market share for the domestic automakers fell to 42.5 percent from 51.5 percent a year earlier, while the Asian brands led by Toyota advanced to 49.5 percent from 41.8 percent. European brands had 8 percent of the market, up from 7 percent.

GM plans to cut North American first-quarter production 57 percent to adjust to flagging demand. GM also said Percy Barnevik, 67, retired chairman of AstraZeneca PLC, resigned from the board for personal reasons after 12 years.

GM marked its 12th straight month of declining sales, while those streaks reached 14 months at Ford and 13 at Chrysler. The U.S. auto market hasn’t grown since October 2007.

"The U.S. automakers can’t survive if these rates continue," Jesse Toprak, director of industry analysis for auto-research firm Edmunds.com in Santa Monica, Calif., said in a conference call Tuesday. "But it’s not just the Big Three. All automakers are going to suffer if this continues."

January had 26 selling days, 1 more than a year earlier. Some automakers release results adjusted for sales days, meaning the totals will be about 4 percent lower than unadjusted numbers. Bloomberg uses unadjusted figures.

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