May 3, 2024

March Auto Sales Increased 3.4% for Highest Total Since 2007

DETROIT — Automakers reported on Tuesday that March sales of new cars and trucks were the highest monthly total in five years, providing more evidence of a sustained turnaround in the industry.

According to Autodata, 1.45 million vehicles were sold during the month, a 3.4 percent improvement over last year, as a strengthening housing market and low interest rates spurred consumers and businesses to replace aging models.

It was the best monthly performance since 2007, executives and analysts said, and it reinforced their sales forecasts for the full year at more than 15 million vehicles.

“Even though consumer confidence has been up and down this year, there are ‘wealth effects’ that are making Americans feel comfortable finally buying new cars they’ve been waiting for,” said Lacey Plache, an economist for the auto research site Edmunds.com.

General Motors, the largest American automaker, said it sold 246,000 new vehicles during March, a 6.4 percent increase over the same period last year.

While sales of its biggest brand, Chevrolet, were flat, G.M. said sales of its Cadillac brand increased almost 50 percent and Buick sales rose 37 percent.

G.M. benefited from a steadily growing demand from the construction industry for new pickup trucks. Sales of the Chevrolet Silverado increased 8 percent, and the company expects even better results when it begins delivering a newer-model truck to showrooms over the next few months.

“Trucks have improved in lock step with the housing market,” said Kurt McNeil, head of the company’s sales operations in the United States.

Ford Motor said it sold 236,000 new vehicles during the month, a 5.7 percent improvement over a year earlier and the company’s best monthly performance since May 2007.

The results were driven by the heart of the Ford lineup. Sales of the midsize Fusion sedan topped 30,000 for the first time, and demand for the Escape sport utility vehicle was up more than 27 percent.

Ford also posted a 16 percent gain in sales for its F-series pickup, the best-selling vehicle in America.

“Full-size pickup demand continues to gain momentum, outperforming the industry for the third consecutive month,” said Ken Czubay, Ford’s marketing and sales chief for the United States.

Chrysler sold more than 171,000 vehicles in March. Its 5 percent improvement over a year ago was smaller than in some recent months, and it underscored the company’s need to keep refreshing its showrooms with new models.

The company said sales of its Ram pickup truck increased 25 percent over the previous year, and the new Dodge Dart compact car had its best month since it was introduced last summer.

Chrysler is revamping its cornerstone Jeep brand with a new version of the Cherokee S.U.V. and other models. Analysts said broadening the Jeep lineup was crucial to Chrysler’s chances of returning to the double-digit monthly growth it had in 2012.

“Chrysler’s March sales story is one of old and new,” said Michelle Krebs, an analyst at Edmunds.com. “Jeep desperately needs the Cherokee to get back into positive territory.”

The Japanese automakers all reported sales increases in March. Toyota said it sold 205,000 vehicles in the month, a 1 percent gain from a year earlier. While the company more than doubled the sales of its redesigned Avalon sedan, its top-selling Camry declined 11 percent.

Nissan sold 137,000 vehicles, a 1 percent improvement over last year. The all-electric Nissan Leaf, which is now produced at the company’s Tennessee assembly plant, had its best monthly sales of 2,200 vehicles.

Honda posted the strongest results of the Japanese companies, selling 136,000 vehicles for a year-over-year gain of 7.1 percent. Much of the improvement was caused by a 26 percent increase in sales by its Acura brand.

Both Toyota and Honda are back at full strength from lingering inventory problems caused by the Japanese earthquake and tsunami, and they are aggressively updating their showrooms with new products.

All the automakers are advertising heavily to bolster spring sales. One of the busiest has been Volkswagen, which is rapidly expanding its American operations.

Volkswagen sold 37,000 vehicles in the month, a 3.1 percent increase from a year ago. The company said that was its best March since 1973, when it was among the few import brands available in the United States. Adding in the company’s Audi, Bentley and Lamborghini brands, it sold 51,226, a 5.8 percent increase.

This article has been revised to reflect the following correction:

Correction: April 2, 2013

A previous version of this article misspelled the surname of G.M.’s United States sales chief. He is Alan Batey, not Batley.

Article source: http://www.nytimes.com/2013/04/03/business/car-sales-keep-up-their-streak.html?partner=rss&emc=rss

Dutch Put Electric Cars to the Test

But electric vehicles have improved, the network of charging stations in the Netherlands has expanded and drivers like Mr. Langevoort are getting used to the particularities of electric driving. “I used to be a real petrol head,” said Mr. Langevoort, who works for a company that manages electricity networks. “Now, I’ve sold my petrol car.”

Although a number of European countries and a few American states are aggressively promoting the use of electric vehicles to reduce planet-warming emissions and pollution, the Netherlands provides perhaps the ultimate feasibility test. If electric vehicles catch on anywhere, it should be here: a small country — about 100 miles east to west — with gas prices of about $8.50 a gallon and a long tradition of environmental activism.

To encourage electric driving, the country is developing a rapidly expanding national grid of charging stations in cities and along highways; and Amsterdam offers owners of electric vehicles free street parking and charging. With hefty tax breaks, promotional leases and cheaper operating costs, the vehicles offer driving costs no more than those of conventional cars, some analysts say.

The number of plug-in electric vehicles in the Netherlands soared eightfold to about 7,500 last year, and charging posts dot the sidewalks. “In a few countries you’re starting to see a number of E.V.’s on the road, especially in capital cities; they’re very visible,” said Peder Jensen, a transportation expert at the European Environment Agency.

And yet, experiments with the cars in the Netherlands and Denmark also underscore the challenges facing this new technology. Sales have been lower than politicians and automakers hoped, representing under 1 percent of new vehicles, even here. “It seems that the industry has not convinced consumers that they can do this,” Mr. Jensen said. “If they fail over the next few years, I think investors will pull out, and that will be a problem.”

Last year 120,000 plug-in electric vehicles were sold globally, according to a recent report by Pike Research, an industry analyst group, which predicts 40 percent annual growth between now and 2020. In 2012, 52,000 were sold in the United States, which now has 12,000 charging stations, according to the automotive consulting firm J. D. Power; but they are dispersed over a large area. Those statistics include pure electric cars and plug-in hybrids, which can run on gas or propane once the battery loses power.

Though many analysts had assigned electric vehicles to the second-car niche, a 2012 survey of Dutch drivers of the cars by the consulting firm Accenture found that most of them ended up being used as a family’s primary vehicle.

Drivers learned to figure out how far they could drive on a charge, overcoming what has been dubbed “range anxiety.” They started off cautiously driving straight from home to the office, knowing they could charge at one or both sites. Over time, they expanded their driving repertoire, learning where to find charging points in garages and along highways — a smartphone app contains them all — much as people learn the locations of convenient A.T.M.’s. That task was made easier by the growing number of chain stores and restaurants offering parking spots with charging outlets, so that customers can refuel while they dine or shop.

Still, a layer of complexity limits acceptance. “There’s still some planning; it’s a bit like a puzzle,” said Maarten Noom, an Accenture consultant who drives an electric vehicle. “It’s not the same ease of mind as with a gas car.”

Mr. Noom, for example, charges at his office and overnight at home, but he switches to a gasoline car when his appointments are scattered around the Netherlands, since he sometimes drives hundreds of miles in a day. Charging at home uses low voltage and takes four to eight hours. New high-voltage rapid charging stations give an 80 percent charge in 20 to 30 minutes, but they are costly to install and still rare.

Mr. Langevoort, the electricity company manager, says he now leaves for work later because his Opel Ampera’s charge goes further as the day warms.

Some electric car leasing programs here provide free or discounted gas vehicles for those who want to take a weeklong driving vacation around Europe.

Many experts say the lack of a uniform business model in the fledgling market is also a hindrance. Contracts for charging are sometimes purchased along with the car and tied to a particular charging network, much as cellphones are linked to a certain carrier. What is more, the penetration of the various networks varies depending on the region, and technology is not always interchangeable.

In Europe, the charging network run by New Motion delivers electricity from pumplike devices. One rival, Better Place, offers swap stations where drivers get a fresh battery in addition to charging points. In the United States, SAE International, an organization of scientists and vehicle engineers, recently adopted a standard charging plug nationwide so that most electric vehicles can use any charging station. But some companies, like Tesla Motors, operate closed networks of high-performance “superchargers.”

“That type of uncertainty is also unsettling to customers,” said Mike Omotoso, a senior manager of forecasting at LMC Automotive, a market research firm. “There’s a Wild West feel, with a lot of companies jumping in. But ultimately there will be a shakeout and consolidation.”

In many European countries there is a good financial case for driving electric. In Denmark, taxes on new luxury cars can be 200 percent of the sticker price, whereas electric vehicles come tax-free. In the Netherlands, gas costs about five times as much as the electricity needed for a similar journey.

While there are some tax breaks for electric vehicle purchases in the United States, the Obama administration has relied more on exhortation to make electric vehicles “as affordable and convenient as gasoline-powered cars in the next 10 years.” Last month, the Energy Department announced its Workplace Charging Challenge, in which Google, Verizon, Eli Lilly, Nissan and other companies pledged to put charging infrastructure in at least one major office.

Mr. Jensen, of the European Environment Agency, said that a big infusion of money could be needed to improve infrastructure in those countries seeking to increase the use of electric vehicles.

When he looked into buying an electric car, the charging system would not fit in his garage, Mr. Jensen said, and few are willing to drive around Europe with a trunk full of adapters. “I think the companies who will win are not necessarily the ones that have the best technology, but the ones that form the best alliances,” he said. “It you have a mobile phone — and even more a car — the most important thing is that you can use it wherever you go.”

Article source: http://www.nytimes.com/2013/02/10/world/europe/dutch-put-electric-cars-to-the-test.html?partner=rss&emc=rss