Auto sales plunge in Jan.; Chrysler drops 55%, GM 49%, Ford 40%

DETROIT -- But Subaru bucked the trend of declines for a second month in a row, posting an 8% sales increase, and Hyundai said its sales jumped 14%.

Chrysler had projected that U.S. light vehicle sales for all automakers would fall to 11.1 million this year, but on Tuesday lowered that estimate to 10 million, if the same sales trends continue throughout the year. The automaker cited the tight credit markets that have restricted all kinds of lending.

Meanwhile, GM and Chrysler, racing to cut costs and shed workers, each were starting new r ounds of buyouts and early retirement packages for their union workers. Both automakers must present outlines of plans to become viable in the long term to the federal government by Feb. 17, under the terms of federal bailout loans they received.

Sales of all three of Chrysler's brands tumbled in January. Chrysler-branded vehicle sales fell 69%, led by the PT Cruiser, which saw sales fall 80%. Jeep vehicle sales fell 49%, led by a 71% drop in sales of the Jeep Commander. However, the Jeep Wrangler posted a sales gain of 4%. Dodge sales fell 50%, led by a 99% drop off in Dodge Magnum sales.

Chrysler also said that in January it slashed by 80% bulk sales of cars to rental-car companies, governments and businesses. So-called fleet sales tend to erode both profit and the residual value of vehicles.

GM attributed much of its sales decline to an 80% drop in fleet sales.

GM's retail sales were down 38% for the month but its retail market share held steady compared with December, the company said.