After nearly a two-year industry slump, the U.S. auto sector shows signs recovery with major automakers reporting higher sales for the month of October, lead by rising customer demand for new cars and crossover utility vehicles. Positive auto sales growth for the month sounds the bellwether of the U.S. economy, which is just recovering from the grip of recession.
General Motors posted a 4.1% growth in sales, Ford Motor Co. (F) sales rose 3.1%, Toyota Motor Corp. (TM) sales edged up less than 1%, and Daimler AG (DAI) sales improved 9.4% over last year. However, Chrysler reported a 30% drop in its sales for the month.
General Motors Co., now known as Motors Liquidation Co. (MTLQQ.PK), posted a 4.1% growth in its sales, which is the company's first year-over-year gain since January 2008. The company attributed the sales growth to the strong performance by its four core brands. GM noted that it gains market share for the third straight month, estimated at 21% of the total light vehicle market.
Ford Motor said Tuesday that its October U.S. sales rose 3.1% from last year, due to strong customer demand for new cars and crossover utility vehicles. This marks the third time in the last four months that Ford has reported higher sales.
GM reported that October sales increased 4.1% to 177,603 units from 170,585 units in the year-ago month. The company's sales grew by 13% from 156,673 units in September 2009.
There were 28 selling days in this month, compared to 27 selling days last October.
Total car sales fell 13% to 63,935 units, while total truck sales grew by 17% to 113,668 units in the prior year month.
Total sales of core brand vehicles rose 11.6% to 162,514 units, while non-core brand vehicle sales dropped 39.6% to 15,089 units.
Among GM's four core brands, Cadillac sales increased 21.6% to 11,602 units, GMC sales rose 20.4% to 25,423 units, Buick sales improved 18.5% to 9,053 units, and Chevrolet sales grew 8.5% to 116,436 units over a year ago.
The four brands accounted for about 95% of GM's retail sales, compared to 85% last year.
Pontiac sales declined 18.4%, Saturn was down 57.8%, HUMMER dropped 77.6%, and Saab declined 74%.
In October, GM produced 228,000 vehicles, including 92,000 cars and 136,000 trucks, which was down 28% over a year earlier.
GM's production for the third quarter dropped 42% to 531,000 vehicles, including 205,000 cars and 326,000 trucks.
At October month-end, inventories of vehicles for U.S. dealers decreased 45% to 444,000, including 172,000 cars and 272,000 trucks, when compared to the October last year.
For the year-to-date period, GM's U.S. vehicle sales fell 33.8% to 1.72 million units from 2.60 million units in the same period last year. Car sales for the period dropped 33.7% to 736,817 units, while truck sales slid 33.8% to 987,737 units.
Looking ahead, GM's expects to produce 620,000 vehicles, including 239,000 cars and 381,000 trucks for the fourth quarter, which is down about 24% from a year ago. However, fourth quarter production volumes represent a 17% growth over the third quarter of 2009.
Last month, GM signed a definitive agreement with China-based privately owned engineering company, Sichuan Tengzhong Heavy Industrial Machinery Co., Ltd., to sell its premium brand Hummer. Financial terms of the deal were not disclosed.
Tengzhong will purchase Hummer through an investment entity, in which it will hold an 80% stake. The balance stake would be held by Suolang Duoji, a Hong Kong-based private entrepreneur.
Among others in the industry, Ford Motor reported that its October sales grew by 3.1% to 136,920 units from 132,838 units last year.
Total sales of Ford, Lincoln and Mercury vehicles rose 2.6% to 132,483 units in October over a year ago. Volvo sales increased 19.4% to 4,437 units 3,717 units in the prior year month.
In the Ford, Lincoln and Mercury brands, car sales for the month improved 10.7% to 45,225 units. Total Truck sales for the month declined 1.1% to 87,258 units.
Ford, yesterday, reported a profit for the third quarter, helped by new products, structural cost reductions and improved results at Ford Credit. Looking ahead, the company said it now expects to be solidly profitable in 2011, although the near-term growth outlook remains uncertain.
Japanese automaker Toyota Motor, reported October sales that rose 0.04% to 152,165 units from 152,101 units in the year-ago month.
The Toyota Division posted October sales of 132,663 units, down 2.3% from the same month last year. However, sales of Lexus Division grew 19.8% to 19,502 units from the prior year month.
Nissan Motor Co. Ltd. (NSANY.PK) reported that its October total vehicle sales increased 5.6% to 60,115 units from 56,945 units in the year-ago month.
Total car sales rose 1.8% to 39,743 units, while total truck sales grew 13.9% to 20,372 units over a year earlier.
Another peer, Daimler said that its U.S sales for the Mercedes-Benz Cars division, Mercedes-Benz and smart combined, rose 9.4% to 18,854 units in October from 17,232 units last year.
Mercedes-Benz USA reported October sales of 18,193 vehicles, up 21.3% from a year earlier. Sales from smart USA dropped 70.4% to 661 vehicles.
Chrysler Group LLC reported that its sales for October dropped by 30% to 65,803 units from 94,530 units over a year ago.
Total car sales fell 30% to 17,556 units, while total truck sales decreased by 31% to 48,247 units from the prior year month.
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