Chrysler Group LLC, Ford Motor Co. (F) and General Motors Co. (GM) said U.S. sales in August rose more than analysts estimated as new models such as the Dodge Dart and Ford Escape sent the market to its fastest sales pace since the government’s “cash for clunkers” program.
Chrysler deliveries last month increased 14 percent from a year earlier, the Auburn Hills, Michigan-based company said in a statement. Ford sales rose 13 percent and GM’s climbed 10 percent. Honda Motor Co. and Toyota Motor Corp. (7203) deliveries surged 60 percent and 46 percent to also beat estimates.
The stronger-than-expected results from the five biggest sellers of cars and light trucks in the U.S. reflect continuing strength in the one sector of the economy that has held up as the recovery stumbles. The industry’s rebound has spurred hiring at automobile assembly plants and helped lower Michigan’s unemployment rate closer to the national average.
“This is an affirmation that the automotive market is strong,” Alan Baum, principal of auto-industry forecaster Baum & Associates in West Bloomfield, Michigan, said in a telephone interview. “This would normally be a time in the year when model year-end incentives kick in, and there were some targeted incentives in place that were effective.”
The U.S. automakers topped 10 analysts’ average estimates of 9.9 percent for Chrysler, 8.5 percent for Ford and 3 percent for GM. Honda (7267) and Toyota exceeded seven analysts’ average estimate for gains of 59 percent and 40 percent.
Sales Rate
U.S. light-vehicle sales accelerated to a 14.5 million seasonally adjusted annualized rate, according to researcher Autodata Corp. That’s the market’s best sales pace since 14.6 million in August 2009, when the U.S. government offered incentives for buyers to exchange older vehicles for new models. The industry exceeded 15 analysts’ average estimate of 14.2 million in a Bloomberg News survey.
Chrysler, the automaker controlled by Fiat SpA (F), said deliveries of the Dart almost quadrupled from a month earlier to 3,045, helping extend its streak of U.S. sales gains to 29 months. Chief Executive Officer Sergio Marchionne is counting on a steady climb in demand for Dart, introduced in June, as Chrysler continues to update its lineup.
“We expect Chrysler to continue to gobble up incremental share in the compact-car segment,” Alec Gutierrez, an analyst at Irvine, California-based auto-market researcher Kelley Blue Book, said in a telephone interview. “Chrysler is still trying to get enough selection of variety out to their dealers to satisfy demand. Their product portfolio has improved.”
Source: Business Week
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