Threats of periodical downsizing and bankruptcies in the past few years now appear to have been conquered by the American auto industry as car makers reported on Monday increasing sales figures for two years in a row.

As of December 2011, U.S. car makers said combined purchases of passenger cars and trucks reached 12.7 million units, with industry experts predicting the actual number could breach the 13 million mark when all companies have completed their reports by the initial weeks of 2012.

The latest sales figures, according to the Associated Press, have surpassed the levels seen in the past two years, with early projections that by the end of the current year, up to 14 million units will roll out of dealers' outlets.

While the 2009 sales report marked the worst year for the American auto industry in more than two decades, the slowly recovering U.S. economy, experts said, paved the way for the brisk movements last year.

Analysts also attributed crucial adjustments instituted by major carmakers, which rationalized their production and eliminated mistakes or weak projections, all translating to better margins for the industry that only few years ago was teetering in the brink of collapse.

AP also reported that credit availability and better interest rates have convinced millions of American car owners to finally ditch their old cranky units in favor of buying new ones that suited their budget and lifestyles.

The positive numbers have encouraged many companies to start investing anew, with Ford, GM, Volkswagen and Honda planning to upgrade their output and collectively hire some 13,000 new workers.

The industry as a whole will employ additional 167,000 workers by 2015, which according to estimates by The Center for Automotive Research would represent a 28 percent jump on current workforce levels.

Those rosy figures, analysts said, underscore the general positive environment now enjoyed by the industry.

And the prospect only gets better as government data strongly suggests that the billions spent by Americans last year to acquire new cars will only improve this year, with up to 70 million old units that were bought from 1981 to 2000 set to be replaced by their owners in the immediate years ahead.

Analysts also predicted that changing consumer preference in buying cars of their choice, with small trucks and compact cars getting much of the attention due their affordability and fuel efficiency.

American cars also generated considerable revenues in 2011 as Japanese carmakers were hampered by supply shortages due to the earthquake and tsunami that had hit Japan on March last year.

Analysts predict Japanese carmakers will make a big comeback this year and take part on the projected record sales to be realised by the end of 2012, with Ford, GM, Toyota and Honda seen to head the pack.