US November auto sales struggle to gain ground

DETROIT — U.S. auto sales struggled to gain ground in November and big improvements aren't expected until people stop worrying about losing their jobs.

Sales last month were mostly stable, but even higher incentives couldn't push the needle much beyond last November's dismal lows, when a credit freeze and the financial meltdown kept car buyers at home. Larger gains aren't expected until Americans see a notable improvement in the job market.

One strength was sales of fuel-efficient cars and crossovers, which are as roomy as SUVs but are built on lower car frames, bolstering fuel economy.

Last months' big winner, again, was South Korea's Hyundai, which posted double-digit sales growth. Sales at the top three U.S. sellers — General Motors, Ford and Toyota — held steady, while Chrysler struggled for another month.

Automakers are looking for signs of life in the market, which is recovering from a historic drop in sales that began last year. Sales in October were unchanged from a year ago.

Small monthly auto sales increases are likely as the economy continues its slow improvement, but larger auto sales gains will not happen until the jobless rate drops substantially, and people feel confident spending money on big-ticket items, said Martin Zimmerman, a former Ford Motor Co. chief economist who now teaches at the University of Michigan.

The U.S. jobless rate hit 10.2 percent in October, a 26-year high, and Zimmerman said people are holding onto their vehicles.

Carmakers continued to rely on discounts and other incentive spending to sell cars and trucks last month. Sales incentives rose 2 percent in November to $2,713 per vehicle, according to the auto Web site Edmunds.com.

General Motors said its sales fell 2 percent in November, though sales of its core Buick, Cadillac, Chevrolet and GMC brands rose. Ford's sales were essentially flat compared to last November, at 122,846, although sales of its crossovers rose 26 percent and sales rose 14 percent. Trucks and SUVs saw double-digit declines.

Ford's hybrid sales increased 73 percent, to 2,361, as buyers gravitated toward gas sippers. At about $2.65 per gallon, regular gasoline is up around 50 cents over November of last year.

The Ford Fusion sedan, which leads the mid-size category in fuel-efficiency at 34 miles per gallon, posted a 54-percent increase from last November, shattering its previous record for full-year sales.

"We can see now that a modest economic recovery is under way," Ford senior economist Emily Kolinski Morris said.