RENEE MONTAGNE, Host: American automakers had more dismal news to report yesterday when they released sales figures for January. Michigan Radio's Tracy Samilton has more on their continuing problems.</s>TRACY SAMILTON: Chrysler sales plummeted 55% in January compared to January of 2008. GM sales were down 48%. Ford did the best. Its sales dropped only 40%. Declining sales means the companies are burning through cash at a fast clip. Chrysler and GM expect their last installment of federal loans at the end of March. George Magliano is an automotive industry analyst with IHS Global Insight.</s>GEORGE MAGLIANO: As things get any worse, staying where January is, no, they're going to need more money.</s>TRACY SAMILTON: But even executives at the company that's struggling the most insist they can survive an extended downturn. Chrysler president Jim Press says everyone needs to adjust expectations because sales won't be much better next month.</s>JIM PRESS: These are the good old days. We need to get our arms around the fact that this is probably normal, at least at this point in time.</s>TRACY SAMILTON: Meanwhile, automakers continue to reduce dealer inventories, production capacity, and employees. Both Chrysler and GM made new buyout offers to hourly workers this week. For NPR News, I'm Tracy Samilton in Ann Arbor.
Japanese carmakers Mazda and Mitsubishi warn they'll lose money this year. Mazda, which is partly owned by Ford, had expected to make a profit. Toyota and Honda have already warned of losses for this fiscal year ending in March. Japanese carmakers are reducing staff and production to cut costs and prevent a costly buildup of inventory.