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AUTO SALES STRUGGLE TO GAIN GROUND
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By TOM KRISHER and DEE-ANN DURBIN

Associated Press

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.

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

Last month's 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.

The auto market 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 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.

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.

Last November, U.S. car and light truck sales fell to a 26-year low of 743,606, according to Ward's AutoInfoBank. Sales tumbled even lower in January and February before climbing steadily through the spring and summer.

AP Auto Writer Dan Strumpf contributed to this report from New York.
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