The meltdown of the U.S. auto industry
General Motors and Chrysler ended up "on their knees before Congress begging for money to keep operating." The two companies have until the end of March to come up with restructuring plans.

Sales in the tank
2008 U.S. auto sales are expected to be around 13 million, down from 16.2 million last year and the lowest total since 1991. Every segment - cars and trucks, the Detroit 3 and imports - was hit.

Gasoline prices tops $4 a gallon
The average price reached $4.11 a gallon nationally in July and sales of pickups and SUVs fell on a cliff. Despite the fall in prices, the incoming Obama administration is pledging to help the industry build fuel efficient vehicles.

Leases cease
With residual values of trucks and SUVs in a freefall due to high gas prices, lenders stopped or cut back lease programs - which in turn caused lower sales.

Brutal year for dealers
About 900 new-vehicle dealerships closed their doors, the most since 1982. And the National Automobile Dealers Association is expecting another 1,100 closures - 80 percent domestic brands - in 2009.

Rumored takeover of Chrysler by GM
On and off again rumors persisted through the year and may be on again in 2009.

Small car resurgence favors Asian manufacturers
While the high gas prices favored Japanese and Korean manufacturers in the summer, sales dropped off as prices slumped in the fall and the global economy went into recession.

Auto industry cranks up fuel-saving technology
The auto industry went green in 2008, starting with the 35 miles per gallon by 2020 passed by Congress in December 2007 and then pushed into overdrive by the record high gas prices of the summer. Despite the drop-off in prices, fuel-efficient vehicles remain on track.

Bill Heard Enterprises goes belly-up
The 14-store Chevrolet dealership went under due to a lack of financing, accumulated lawsuits and a general failure to keep up with changing times.

Strike shuts American Axle for 3 months
The three month strike slowed or idled as many as 30 of General Motors' light truck assembly and parts plants. The UAW plan backfired when demand for light trucks coincidently tanked.