March 29, 2024

Auto Sales for February 2013 Jumped 3.7%

Automakers sold 1.19 million vehicles during the month, a 3.7 percent increase over the period a year earlier, according to the research firm Autodata.

The seasonally adjusted annual sales rate, a closely watched market indicator, totaled about 15.4 million vehicles. The rate bodes well for the industry, as automakers increase production to meet demand for their new products.

The February results were a bit lower than anticipated, analysts said, attributing part of the slowdown during the latter part of the month to rising gas prices and fluctuations in the stock market.

“Whenever there is uncertainty in the stock market, the car market doesn’t like it,” said Jesse Toprak, an analyst with the automotive research site TrueCar.com. “But despite lower stocks and higher gas prices, consumers continued to buy.”

The two largest Detroit car companies, General Motors and Ford Motor, posted some of the best results among all the major automakers.

G.M. said it sold 224,000 vehicles in February, a 7.2 percent increase from the same month in 2012.

All of G.M.’s domestic brands — Chevrolet, Cadillac, GMC and Buick — had higher year-over-year sales.

Cadillac led the way with a 20 percent gain, primarily because of healthy sales of the new ATS compact sedan.

G.M. also reported increases in sales of its newest small cars, like the Buick Verano and the Chevrolet Spark. But its most prominent gains were in pickup trucks. The company said sales of the Chevrolet Silverado pickup rose 29 percent, and the GMC Sierra increased 25 percent.

Executives attributed the performance to a surge in housing starts and the need for construction companies to replace older pickups.

“A significant tail wind for our industry is new home construction, which is creating jobs and fueling the demand for pickups,” said Kurt McNeil, G.M.’s vice president for United States sales operations.

Ford said it sold 195,000 vehicles during the month, which represents a 9.3 percent gain from a year ago.

Much of Ford’s gains came from sales of sport utility vehicles like the Escape and Explorer. The company’s redesigned midsize sedan, the Fusion, also had a good month, with a 28 percent improvement over last year.

And like G.M., Ford also benefited from higher demand for pickups. Ford said that it sold 54,000 F-series trucks during the month, a 15.3 percent increase from February 2012.

But Ford is still struggling to invigorate its lagging Lincoln luxury brand, which dropped 29 percent in sales.

“Lincoln’s performance was dismal,” said Michelle Krebs, an analyst with the research site Edmunds.com.

The growth rate at Chrysler, the smallest of the Detroit automakers, slowed somewhat after several months of recording double-digit increases.

The company said that it sold 139,000 vehicles in February, a 4.1 percent improvement over a year earlier. That is a smaller increase than Chrysler has reported in previous months.

“In spite of a cautious ramp up of some of our most popular products, which limited inventory last month, we still managed to record our strongest February in five years,” said Reid Bigland, head of United States sales for Chrysler.

Chrysler’s best performers during the month were passenger cars like the new Dodge Dart.

Sales of its Ram pickup increased 3 percent, while sales of its Jeep sport utility vehicles dropped 16 percent.

The big Japanese automakers had mixed results, as they continued their methodical comeback from inventory disruptions because of the earthquake and tsunami in Japan two years ago.

Toyota, the largest Japanese car manufacturer, said it sold 166,000 vehicles in February, about 4.3 percent more than a year earlier.

Usually, Toyota’s passenger cars are its hottest sellers and its trucks trail the market. But in February the roles were reversed, as its car sales dropped about 3 percent and its sport utility vehicles and truck sales increased by 16 percent.

Honda reported a 2 percent drop in sales, to 107,000 vehicles. The company said heavy winter storms in the Northeast, traditionally one of its strongest regions, contributed to the decline.

And Nissan said its February sales slid about 6.6 percent, to 99,000 vehicles.

February was a relatively good month for Volkswagen, the big German automaker, which is rapidly expanding its United States operations.

V.W. said it sold 42,000 vehicles during the month, an 8.4 percent increase from the previous year. The results were fueled primarily by strong sales of its Audi luxury-brand vehicles, which rose about 28 percent.

Article source: http://www.nytimes.com/2013/03/02/business/detroit-car-sales-climb-again.html?partner=rss&emc=rss