Auto Sales Rise 35.2 % Over Last Year
The rush to beat widespread buyer-incentive deadlines boosted sales of domestic-made cars and light trucks 35.2% in early May compared to a year ago, industry analysts said Friday.
Auto makers sold 204,270 domestic-made cars and light trucks in the eight selling days from May 1-10, up from 151,131 in the period a year ago, the companies reported.
Last year, the incentives expired in April, depressing sales in early May, said David Healy, analyst with Drexel Burnham Lambert in New York.
General Motors Corp., the industry leader, sold 35.1% more cars and light trucks, while No. 3 Chrysler Corp. sales jumped 48.6% from the low performance of a year ago.
Chrysler’s sales rose on most vehicles, but particular improvements included a 72% increase in Jeep sales from sales by American Motors Corp. a year ago and a 55% increase in minivan sales.
Chrysler held 57% of the minivan market in April, said Chrysler spokesman Baron Bates.
Bates and Chrysler’s director of sales operations planning, Steve Torok, attributed the increase in Jeep sales to increased production and greater consumer confidence in Jeep since Chrysler bought AMC in August.
For Ford Motor Co., the No. 2 maker, combined car and truck sales were up 31.5% and set a company record for the period. Ford’s truck sales also passed GM’s and set a separate company record for the period, said Ray Windecker, a Ford company analyst.
The Big Three extended their incentive programs after May 11 but reduced the numbers of models covered in some cases and cut the size of rebates on many vehicles because inventories have been cleared out.
GM’s domestic-made car sales rose 36.4%, Ford’s were up 30.5% and Chrysler’s rose 44.8% from a year ago. GM light truck sales increased 32.1%, Ford’s rose 32.9% and Chrysler’s jumped 53.1%.
Nissan Motor Corp., Mazda Motor Corp. Honda Motor Co. and Toyota Motor Corp. all also reported increased sales of U.S.-made cars and, for Nissan, light trucks.
Volkswagen of America Inc., which is closing its Westmoreland, Pa., factory in July, has begun phasing down production there, leading to a decline in its domestic-car sales.
