DETROIT (AP):
After months of roller-coaster results, the US auto industry showed signs of stability in October.
Total sales of cars and light trucks were unchanged at just over 838,000 compared with October of last year, but rose 12 per cent from a dismal September 2009, Autodata Corp reported Tuesday. The results signalled that some consumers are starting to spend again and the sputtering economy is beginning to pull out of trouble.
"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, if projected for an entire year, rose to 10.5 million after slumping to 9.2 million in September, the month after the government's Cash for Clunkers rebates ran out. Analysts said the figures are good for a normally weak October, but they are still far short of the 17 million annual rates from the late 1990s and early 2000s.
"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 per cent to 31,005 vehicles, boosted by the Elantra small sedan. Japan's Nissan Motor Co came next with a 5.6 per cent gain, followed by GM at 4.7 per cent, aided by strong pickup truck sales, the performance of new models and the highest incentives in the industry. It was GM's first year-over-year monthly sales increase in 21 months.
Toyota Motor Corp said its sales edged up less than one per cent, while Honda sales were flat. Less-rosy news came from Chrysler Group LLC, whose sales fell 30 per cent, though they improved from September.
consumer goodwill
Ford Motor Co's sales rose three per cent and it gained US market share for the 12th time in 13 months as its critically acclaimed vehicles continue to grab buyers from rivals. Ford has benefited from consumer goodwill because it did not take government bailout money or go into bankruptcy protection, as General Motors and Chrysler did.
But there are ominous signs that could continue to drag down auto sales.
The jobless rate hit a 26-year high of 9.8 per cent in September and is expected to rise to 9.9 per cent when the October rate is released Friday. Consumer confidence continued to deteriorate last month amid pessimism about future earnings and worries the economic climate would worsen in the next few months.