Detroit — General Motors Co. reported its first monthly gain in U.S. sales in almost two years while Toyota Motor Corp. and Ford Motor Co. also improved, a sign the auto industry it starting to crawl back from a year-long slump.
Demand for new cars and crossovers in October fuelled better results for GM and Detroit rival Ford. GM's sales rose 4 per cent from October, 2008, while Ford notched a 3 per cent gain. Japanese rival Toyota said its sales edged up less than 1 per cent. Less rosy news came from Chrysler Group LLC, whose sales fell 30 per cent, though they improved from September.
Auto makers had said October would be a test of how strong the market was without any effect of the government's Cash for Clunkers program. The industry staggered through a tough September, hurt by the collapse of demand following the clunker rebates that fuelled a sales surge over the summer.
The mood was in contrast to a year ago, when consumers were frightened away from showrooms by the early effects of the financial meltdown and credit freeze.
This October, Ford got a boost from new products launches and gained U.S. market share for 12th time in 13 months as it critically acclaimed vehicles continue to grab buyers from rivals. Ford has also benefited from consumer goodwill because it didn't take government bailout money or go into bankruptcy, as General Motors and Chrysler did.
More than 80 per cent of Ford's sales last month came from 2010 models, which also helped the company lower its incentives.
That was in line with the industry, which spent less to give car buyers big rebates. Auto makers focused on clearing out old inventory and focused on selling 2010 models, which are not discounted as heavily.
Fuel-efficient models like the Ford Fusion sedan and Escape small sport utility vehicle sold well, with both notching sales jumps of around 25 per cent. Ford's overall car sales rose 11 per cent over last October, while crossovers climbed 23 per cent.
New 2010 models like the Taurus and Lincoln MKT crossover also flew off dealer lots.
Ford's truck sales, by contrast, fell 10 per cent.
Chrysler, the maker of the Chrysler, Dodge, Jeep and Ram truck brands sold 65,803 vehicles last month, up 6 per cent from September. That was when its sales slumped because dealerships could offer few popular models. The auto maker, which is announcing a new product strategy on Wednesday, is aiming to show steady improvement from month to month.
Looking to boost November sales, Chrysler will offer a slew of new incentive programs this week. The car maker will offer 0 per cent financing for up to 48 months on all its vehicles, and a no-cost maintenance and service program its Jeep and Chrysler brands. Buyers also can opt for $2,500 off their purchase if they don't take the no-interest financing. The deals begin Wednesday and run until Nov. 30.
Ford, meanwhile spent the least on incentives among the Detroit Three auto makers, according to Edmunds.com. Ford spent $2,909 (U.S.) per vehicle. That's down one-fourth from October last year and 6 per cent from September.
Still, it spent more on incentives than the industry average, with Japanese auto makers like Honda Motor Co. Ltd. and Toyota spending significantly less.
Japanese auto maker Subaru said its October auto sales surged 41 per cent, helped by strong sales in its Outback and Forester models.
© The Globe and Mail
