Reuters reported that US auto sales rose by 17% YoY in November 2010 from a year earlier, a stronger than expected gain that pointed to a slow but steady return in consumer demand from the depressed levels of a year ago.
The annual sales rate was near 12.3 million vehicles in November 2010, flat with October, as American consumers were lured into showrooms by month end discounts for new car purchases that many had delayed through the recession.
Ford Motor Co reported a 24% increase in sales. Chrysler sales rose 17% and General Motors Co sales were up 11% overall. Ford sales exclude the Volvo car unit it sold to China’s Geely in August.
Mr Jesse Toprak analyst at TrueCar said that "We are seeing consumers coming back in the marketplace not just because they need a car but because they want one, which is a significant change from the buying patterns we have seen in the last nearly two years."
Toyota, the world's top automaker, said that it cut back on sales to fleets including car rental agencies by 60% in November from a year earlier, while its sales to consumers rose about 5%.
Toyota has recalled about 14 million vehicles worldwide since November 2009, including 11 million in the United States. Toyota said that it would replace potentially defective coolant pumps on 378,000 US Prius hybrids.
Mr Jessica Caldwell senior analyst at Edmunds.com said that "Without new product to compete with and stripped of its bullet proof quality reputation, Toyota is forced to sell on the deal."
GM said it expected that the growing pent up demand for cars, evidenced by rising used car prices and the increasing age of cars on the road, would bolster sales as consumer demand recovers in 2011.
Mr Jim Bunnell GM of GM's US sales operations said that "It's not going to happen overnight, but we think through 2011 we are going to see a continued gradual improvement."
Auto sales for November are one of the first snapshots of consumer behavior at the holiday shopping season. However, automakers typically run year end discount programs from before the US Thanksgiving holiday through year end.
Analysts said that Thanksgiving holiday deals sponsored by individual dealers and manufacturers, including Toyota and Nissan Motor Co, lifted sales late in November 2010.
Internationally, Japan's November car sales fell by 31% excluding mini vehicles, a third consecutive decline. Most European markets also posted November auto sales declines after government incentive programs came to an end. Car sales fell by 11% in France, 25.5% in Spain and 21% in Italy.
(Sourced from www.reuters.com)
