U.S. auto sales up thanks to new models and pent-up demand

Photo of a car

Is 2011 going continue to be a good year for auto manufacturers? CC by cking/Flickr

U.S. auto sales in 2011 will be strong if January is any indication. U.S. automakers usually expect a slow January, but this year, year-over-year sales for the month were strong. The U.S. auto industry finished 2010 with strong sales and industry experts forecast a sustained upward trend in U.S. auto sales for 2011.

Back to normal in the U.S. auto industry

Nearly every U.S. automaker reported a significant sales increase in January, according to truecar.com, an auto industry sales and pricing website. There are many reasons why the U.S. auto industry is doing so well. These include all the new models, the higher consumer confidence, demand going up, the stable fuel prices and the low financing rates. New models include the Volt plug in hybrid from GM, the Chevy Cruze and the new Ford Explorer. Ford and General Motors rode those new models and a new public perception in manufacturing quality to the biggest sales increases among U.S. automakers.

Statistics of U.S. auto sales

It is also good for the industry that there were fewer fleet sales with discounts than in 2010. Households are starting to go back to dealer showrooms. A 22 percent increase in sales for year-over-year was recorded by General Motors. In January, a 9 percent increase in sales was recorded by Ford too. A 36 percent increase in individual buyers was shown by General Motors. Then, the largest year-over-year increase in 10 years for that category was shown by Ford with a 27 percent increase. A 23 percent increase in January was reported by Chrysler while a 15 percent increase was reported by Nissan. A 17 percent increase, which isn’t that great, was reported by Toyota because Toyota had to recall more than 10 million cars worldwide.

American auto sales going up

U.S. auto sales overall in January were about 17 percent higher than the first month of 2010. From January 2010, the amount sold went from 10.8 million to 12.5 million in December to a 12.6 million annualized rate. Across the U.S. auto industry, sales rose 11.1 percent in 2010 to 11.6 million vehicles. Automakers project U.S. sales of more than 13 million in 2011. Before the recession hit, U.S. auto sales hit 16.1 million in 2007.

Citations

New York Times

Bloomberg

Daily Finance

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