September’s Automotive Sales Bode Well for ’11
Although it’s not time for a celebration yet, the U.S. auto industry in September posted its best monthly wholesale sales rate in 13 months. The industry sold 959,049 light vehicles in September — a year-to-year jump of 29% — for a seasonally adjusted annual rate of 12.2 million, as calculated by the Automotive News Data Center.
Inventories last September were depleted in the aftermath of the federal government’s cash-for-clunkers incentive program, Automotive News reported.
Other than August 2009 when the clunkers program inflated the sales rate to 13.7 million, last month was the first since September of 2008 during which sales surpassed 12 million. The rate in September 2008 also was 12.2 million.
“It’s a solid month, another step in a stable, somewhat painful recovery,” said analyst Jesse Toprak of TrueCar.com. “This may be a healthier way to recover.”
George Pipas, Ford Motor Co.’s lead sales analyst, said September capped the fourth straight quarter of modest recovery in the pace of U.S. auto sales.
And modest improvement may be acceptable at this point, he said, in that it may keep industry players from falling back into the bad habits — overproduction and massive incentives — that led to disaster for so many companies when U.S. auto sales tanked.
“We’re happy with what we’re getting,” Pipas noted. “We’re not going to waste a lot of time wishing that things would go quicker.”
Looking at the big picture:
* Ford’s sales jumped 40% to 160,375 on strong sales of pickups and new models such as the Fiesta subcompact.
* General Motor’s sales rose 11% in September to 173,031, including its four discontinued brands. However, its core brands — Chevrolet, Buick, Cadillac and GMC — rose 22% while retail sales of those core brands jumped 39%.
* Chrysler Group posted the biggest year-over-year increase of any manufacturer for the month, rising 61% to 100,077.