Sales of Vehicles Jump 4.2% in the First 10 Days of June
Sales of North American-made cars and light trucks rose 4.2% in early June, picking up momentum as consumers grew more confident about the economy.
The advance was due to an 11.4% jump in truck sales, which offset a 0.2% drop in car sales between June 1 and 10. It was the third consecutive 10-day period in which vehicle sales exceeded year-earlier levels.
“It really signifies that the recovery is for real and there is some substance to it,” said John Kirnan, an auto industry analyst with Salomon Bros. in New York. “I have a very difficult time seeing how this recovery can be short-circuited, short of external factors such as an oil crisis.”
He credited the uptick to the aging of cars now on the road, increased consumer confidence and lower personal debt.
The average age of cars and trucks on American roads is at an all-time high, about eight years for cars and 8 1/2 for trucks, Kirnan said.
Domestic makers sold 34,664 cars and trucks a day, compared to 33,277 a day during the June 1-10 period last year. There were nine selling days in the period this year and eight last year.
Big Three car and truck sales rose 2.7% during the period, while sales of transplants--Japanese vehicles made in the United States--soared 19.4%.
For the year, vehicle sales are up 6.3% over last year’s rate, with Ford Motor Co., General Motors Corp. and Chrysler Corp. up a combined 6.7% and transplant sales up 3.9%.
For the 10-day period, Ford sales rose 8.6%, with car sales up 6.3% and truck sales up 11.7%. Chrysler was up an estimated 5%, with an 11.7% increase in truck sales offsetting an 18.8% decline in car sales.
Chrysler’s figures are estimated by Ward’s Automotive Reports, which bases its numbers on market trends adjusted for seasonal factors such as production pace, incentives and fleet sales.
GM sales were down 1.7%, with car sales falling 3.9% and truck sales rising 2.7%.
Dealers say they were seeing a more optimistic shopper in early June.
“The first 10 days of June were phenomenal,” said James Basil, general manager of Basil Chevrolet in Depew, N.Y., outside Buffalo. “The people coming in were in a much better frame of mind and more confident about the economy.”
His boost in part was due to a three-day promotion with nearby dealers. Basil said many car buyers offered clunkers as trade-ins.
“A lot of the cars we took in were older cars--’85-’86 and older. There weren’t many we could resell,” he said. “Some people were buying new cars out of necessity.”
Chrysler’s jump in truck sales was fueled by a rebate of up to $2,100 on the popular Voyager minivan. The rebate expires next Monday.
“It’s been like Christmas,” said Alan Helfman, general manager of River Oaks Chrysler-Plymouth in Houston. “I have a smile on my face every day I come to work.”
