Carmakers report August sales up double-digits
By Tom Krisher and Dee-Ann Durbin, APDETROIT -- The major U.S. and Japanese automakers all posted double-digit U.S. sales gains last month as car buyers snapped up pickup trucks and small cars to lead the industry toward its best month in six years.
September 6, 2013, 12:35 am TWN
Honda reported the biggest gain with sales up almost 27 percent over August of last year. Toyota sales rose nearly 23 percent, while Nissan was up 22 percent. At General Motors, sales were up almost 15 percent for the company's best month since September of 2008. Chrysler and Ford each reported 12 percent gains.
Auto stocks rose, with Ford and GM up around 4 percent. U.S.-traded shares of the Japanese automakers all rose more than 1 percent.
Sales in August ran at an annual rate of 16.1 million cars and trucks, a pace not seen since November of 2007, a month before the start of the Great Recession.
Mustafa Mohatarem, GM's chief economist, predicted that rate of sales is here to stay. History, he said, shows that auto sales follow a trend, and that trend is now back above pre-recession levels.
“With the underlying economy fairly solid and with the still very high average age of the fleet, I have full expectations that we will continue to see a fairly steady industry,” Mohatarem said.
The average age of a vehicle on U.S. roads today is a record 11.4 years according to the Polk research firm. That means more people have to replace cars and trucks that they kept through the recession.
While GM didn't officially raise its sales forecast for the year from 15.5 million, Mohatarem said he expects the year to end with sales closer to 15.8 million vehicles.
Also, the industry is on better footing than it was in 2007. Prices are high and automakers aren't resorting to huge discounts to pull customers into showrooms, Mohatarem said.
Consumers are spending at record levels to buy loaded-up vehicles, according to the TrueCar.com auto pricing web site. The average U.S. vehicle sold for an estimated US$31,252 last month, up almost US$1,000 over August of last year and US$24 higher than the previous record in December of 2012. Five automakers, Chrysler, Ford, Honda, Nissan and Volkswagen, all had record-high selling prices last month, according to TrueCar.