Auto sales show industry starting to stabilize

By The Associated Press Comments 0
Published: November 4, 2009

DETROIT — After months of roller-coaster results, the U.S. auto industry showed signs of stability in October.

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Total sales of cars and light trucks were unchanged at just over 838,000 compared with October of last year, but rose 12 percent from a dismal September 2009, Autodata Corp. reported Tuesday. "It’s … a fairly stable kind of footing that the industry is getting under it,” said Gary Dilts, a former Chrysler sales executive who is now senior vice president of global automotive operations for J.D. Power and Associates.

Last month’s sales rose after slumping in September, the month after the government’s Cash for Clunkers rebates ran out. "Clearly we’re seeing improvement in the economy and in the industry. It isn’t huge, but it’s a good sign given that Cash for Clunkers is over,” said Mike DiGiovanni, General Motors Co.’s executive director of global market and industry analysis.

The biggest winner among major automakers was South Korea’s Hyundai Motor Co., which saw sales skyrocket 49 percent to 31,005 vehicles, boosted by the Elantra small sedan. Japan’s Nissan Motor Co. came next with a 5.6 percent gain, followed by GM at 4.7 percent. It was GM’s first year-over-year monthly sales increase in 21 months.

Toyota Motor Corp. said its sales edged up less than a percent, while Honda sales were flat. Less-rosy news came from Chrysler Group LLC, whose sales fell 30 percent, though they rose from September.

Ford Motor Co.’s sales rose 3 percent and it gained U.S. market share for the 12th time in 13 months as its critically acclaimed vehicles grabbed buyers from rivals. Ford has benefited from consumer goodwill because it didn’t take bailout money or go into bankruptcy protection, as General Motors and Chrysler did.

GM was concerned about its incentive spending, with new sales chief Susan Docherty saying that the company had to bring the numbers down. GM spent $4,100 per vehicle last month as it paid to phase out the Saturn and Pontiac brands. It also had to unload a large number of 2009 pickup trucks.

In October, 52 percent of GM’s sales were 2009 models, 47 percent were new 2010s and one percent were from 2008. By contrast, 80 percent of Ford’s sales were 2010 models.