Through April, AutoNation, the largest U.S. dealership group, will continue to reduce its new vehicle orders by 60 percent per month in anticipation of a continued weak automotive market, according to Mike Jackson, CEO.

In an effort to reduce inventory, AutoNation cut orders in January and February and had already announced its intent to do so in March due to increasing numbers of unsold vehicles on the company's lots.

In 2008, vehicle sales in the U.S. fell to 13.2 million, a decrease of 18 percent over 2007. Automakers are predicting a sluggish year in 2009 with the current annualized sales rate hanging around 10 million.

Some entities are predicting a sales rate of 11 million by year's end, but Jackson indicated that his company intends to stay on the side of caution. "The point is, though -- and this has been the proverbial problem in Detroit -- you are always planning for things to be better, and therefore you leave costs in for better times," he said.

Jackson said the viability plans presented by General Motors and Chrysler to the federal government Tuesday, February17, were a move forward. "The outline of the direction they gave back in November was too optimistic on the sales side and not deep enough on the cuts side," Jackson said. "These plans are much more realistic, and it's the right approach."