General Motors Corp. and Chrysler LLC on Sunday urged dealers to keep ordering new cars and trucks in coming months despite an industrywide sales slump that has kept vehicles piling up on dealer lots.

During a meeting at the National Automobile Dealers Association convention, Chrysler told dealers it will launch a major push to get retailers across the country to order vehicles, and consumers to buy them, ahead of a March 31 deadline to convince the government the automaker can survive.

Chrysler and GM, which avoided collapse last month with a $17.4 billion federal loan package, book revenue when vehicles leave the factory, not when they are sold to consumers, so they need dealers to keep ordering even when plants aren't running. Both companies have instituted broad production cuts this quarter.

Dealers seemed willing to respond to the call for more orders, but consumers are likely to remain skittish about big-ticket purchases like cars with the economy in a recession. "Nothing has changed for consumers," said Paul Melville, an industry expert with consulting firm Grant Thornton LLP. "Credit is still tight, consumers don't have cash and the fear factor is still in existence."

Like the automakers, dealers are struggling to cope with a dramatic decline in the U.S. auto market -- sales fell more than 35 percent in December and were off 18 percent for all of 2008.

GM and Chrysler see consolidating or closing dealerships as a way to cut costs and ensure their viability, a key condition of the federal aid package. But a growing number of dealers are becoming victims of the economy.

Detroit's Big Three automakers lost 988 dealerships last year, nearly 100 more than the dealers association estimated as recently as November. Grant Thornton said another 2,500 dealerships could close this year, about 10 percent of all new car dealers in the country.

The shrinking population of dealers and the uneasiness in the industry was reflected in a 35 percent drop in convention registrations from a year ago. Organizers hoped 10,000 people would make the trip to the Big Easy but the crowds at the convention hall Saturday and Saturday seemed noticeably smaller.

Many dealers admitted they were anxious heading into meetings with the automakers on Sunday but went to New Orleans to get new details about the companies' restructuring plans.

Chrysler executives were forthcoming, but GM executives largely reiterated previously disclosed plans, dealers said following the closed-door sessions. Ford Motor Co. also met with its dealers Sunday.

"Dealers are always nervous at this point in time, but we're a resilient bunch," said Maine dealer Charlie Gaunce, who owns GM, Chrysler and Toyota franchises. "Everyone is concerned about making it through."

Under the terms of their federal loans, GM and Chrysler must deliver restructuring plans to the government by Feb. 17 that outline a path to long-term viability. They must show significant progress by March 31 or they could be forced to pay back the money, a move that would likely push them into bankruptcy.

GM has received $9.4 billion in federal money and could get another $4 billion next month. Chrysler has received $4 billion and has asked for $3 billion more.

GM and Chrysler are pushing for orders to help clear inventories.

Chrysler had a 115-day supply of vehicles on Jan. 1, compared to 102 days for GM and 85 days for Ford, according to Automotive News, an auto industry trade magazine. A 60-day supply is considered optimal.

Chrysler made it clear it wants dealers to order vehicles to boost sales ahead of the March 31 deadline. GM said its request, made during a meeting with about 1,000 dealers, reflects unprecedented production cuts detailed last month, including the temporary closure of 20 plants across North America because of weak demand.

The Detroit automaker is expected to announce more output cuts today.

The production cuts have lowered inventory levels by 37 days from Dec. 1 to Jan. 1 and there might not be vehicles available later if dealers don't order now, said Ed Peper, Chevrolet North American vice president.

"It's always critical for us to sell," Peper said.

Inventory levels aside, GM is facing the same challenges to become a viable company as Chrysler and needs the revenue from dealer orders after losing almost $73 billion since 2004.

During the Chrysler meeting, Vice Chairman and President Jim Press, along with other executives, urged dealers to order their normal allocations of vehicles for February and March.

Chrysler executives said they will launch a national road trip today in the New York City area to spread the message to dealers. The company also is arming retailers with incentives, including employee pricing, zero-percent financing and money that can be spent on advertising, to help spur sales.

In addition, Chrysler asked dealers to make some sacrifices to help the struggling automaker. Chrysler will no longer reimburse them for filling up the gas tanks of new sold vehicles and froze the labor rate increase this year paid to retailers for performing warranty work.

"I think they understand the place we are in and understand the need for all parties to put some skin in the game," said Press, who received a standing ovation during the meeting with about 400 dealers.

Dealers pushed Press to appear in TV ads promoting Chrysler vehicles, but he was noncommittal.

Chrysler needs 78,000 new U.S. car orders in February, about 12 percent fewer than in the same month a year ago, said Steven Landry, Chrysler's executive vice president of marketing and sales.

"We think that's fair," he told reporters.

The automaker also is pushing dealers to order vehicles in March, but did not disclose a target.

Chrysler has not recorded any revenue since mid-December when it shut down all of its North American factories for a month to save money.

Sales of Chrysler, Dodge and Jeep products plunged 53 percent last month, and 30 percent for all of last year. Several dealers said they left the Chrysler meeting feeling refreshed after months of worries.

Wesley Lutz, owner of Extreme Dodge/Hyundai in Jackson, went into Sunday's session prepared not to order any new vehicles this month but changed his mind after listening to Press.

Lutz now plans to place an order Tuesday even though he already has more than a 100-day supply of vehicles on his lot.

Press made a straightforward pitch to convince Lutz to order more vehicles.

"He said, 'Do you want the Kool-Aid or do you want reality?' " Lutz said after the meeting. "He promised us we'd still be open for business in April. That's pretty powerful."

Dealer Fred Frederick, a Chrysler, Dodge and Jeep dealer in Laurel, Md., said he also would order new vehicles despite having a 60-day supply.

Frederick and other dealers said they would continue to fill the tanks of new cars sold at their stores even without Chrysler's help.

"You're not going to get an empty tank," Frederick said.

Meanwhile, GM dealers left Sunday's meeting with few additional details about the automaker's broad restructuring plan, which involves selling, shrinking or killing half of its eight brands and eliminating thousands of jobs and 1,750 dealerships.

"Grim," is how Ohio Chevrolet dealer Duane Huff described the GM franchise meeting, saying many dealers made critical statements about GMAC, the automaker's finance arm that until recently had tightened lending restrictions for consumers.

Other dealers said the mood during the meetings was fine, though CEO Rick Wagoner and other executives did not divulge many details.

"They didn't say anything new that I haven't heard before," said Don Rypma, a Chevrolet, Buick, Pontiac and GMC dealer in Whitehall, in west Michigan.

Peper said the meeting went better than he expected even though executives could not disclose more details about the viability plan.

"We're sharing as much as we possibly can," he said.