Daily Auto News Auto Sales Rose in December
Daily Auto News
The auto industry ended a rough year on a high note. Final sales figures show that December was the industry’s second best month in 2009, trailing only August, when the government’s Cash for Clunkers rebate program inflated sales, briefly, to historic highs.
“Normalcy is about two years away,” Truecar.com analyst Jesse Toprak tells the Detroit News. But, the News notes, “Executives were encouraged by December’s sales, which marked the fourth consecutive monthly increase in the annualized selling rate. Automakers also reported strengthening demand for both large and small vehicles.”
The last week of the year saw a distinct sales surge. The Detroit Free Press reports, “December sales increased about two times more than industry analysts expected — and automakers credited the final week of the year, when more than half of the month’s sales typically occur.”
Among domestic automakers, Ford was the big winner, while GM and Chrysler slipped slightly. Ford, the Washington Post reports, sold 33 percent more vehicles in December 2009 than it did in December 2008. General Motors saw a six percent decrease, while Chrysler slipped by about four percent.
GM’s results, however, may not say much about the company’s future. The New York Times notes, “GM’s December decline was largely a result of a 55 percent drop in sales by the four brands it was shutting down. Sales were up 2 percent at the four brands G.M. is keeping: Buick, Cadillac, Chevrolet and GMC.”
Foreign automakers, however, had a better month. Business Week reports, “Toyota Motor Corp.’s U.S. sales surged 32 percent in December and Hyundai Motor Co.’s soared 41 percent to push Asian automakers ahead of U.S. competitors in annual market share for the first time.” Honda and Nissan also posted double-digit sales increases for the month.
Many analysts expect the upswing to continue, and pick up speed, thanks to signs of a loosening credit market. The Boston Globe reports, “Financial firms wrote 5.5 percent more car loans in the third quarter compared with the prior three months, Experian Automotive says. Fourth-quarter figures aren’t yet available,” but Truecar.com’s Toprak told the Globe that “December saw an uptick in auto-loan approvals for consumers with average or above-average credit.”
If you’re in the market for a new car, check out the U.S. News rankings of this year’s best cars as well as this month’s best car deals.
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