Automakers trying bold moves after poor sales

KUSA - Now that 2008 is out the door, auto dealers hope they can leave that dismal year in their rear view mirror.

All of the big three American automakers, Chrysler, Ford, and GM fell at least 30 percent in sales from last December.

Out of Detroit, Chrysler fell the most: 53 percent, while Ford dipped 32 percent and GM had a decline of 31 percent.

The problem is thesame for foreign automakers.

Toyota had a 37 percent drop, while Honda's sales fell 35 percent.

As most companies try to lure customers with zero percent financing and rebates through the new year, one foreign automaker is trying an unprecedented move.

The Hyundai assurance program is a new incentive plan that allows new car buyers to break their contracts and return the vehicle.

"It's an insurance policy for the consumer," said Mac Clouse, a business professor at the University of Denver.

Any customer who loses a job or becomes disabled, can return the vehicle and walk away from the loan or lease. Hyundai says it will cover up to $7,500 in negative equity.

However, the company decides who qualifies and how much the car is worth.

Clouse says it's an innovative idea.

"Unfortunately it's a sign of the industry, that it took the new automakers to come up with something as creative as this," said Clouse.

Clouse says he wouldn't be surprised if other automakers follow suit by matching Hyundai's incentive plan or try a similar package.

Companies are trying anything to help offset poor consumer confidence.

"They're fearful that they might lose their job. They're fearful that something may happen that will force them to not be able to make the payments," said Clouse.