Auto Industry, Good News | featured news

... the auto industry is weighing in with what appears to have been a solid February – buoyed by a recovery in another key sector of the economy. “The housing sector has now joined auto sales in propelling the U.S. economy forward,” said Kurt McNeil, vice president of U.S. sales operations for General Motors, which reported a 7% increase, year-over-year.

U.S. retail sales rose in September as Americans bought more cars and gasoline, while a gauge of consumer spending pointed to stronger-than-expected economic growth in the third quarter.

General Motors Co, the largest U.S. automaker, reported a 1.5 percent increase in September auto sales on the strength of its passenger car sales, while Ford Motor Co posted sales that were on par with its results from a year earlier.

Retail sales in the U.S. increased in August by the most in six months, boosted by demand for automobiles along with higher gasoline prices that left consumers with less to spend on other goods. The 0.9 percent gain followed a revised 0.6 percent advance in July that was smaller than initially reported, the Commerce Department said today in Washington. The median forecast of 84 economists surveyed by Bloomberg called for an increase of 0.8 percent. Sales slowed at department stores, apparel retailers and electronics outlets.

Strong pickup demand fueled a big jump in U.S. auto sales last month. GM's August U.S. sales rose 10 percent compared with a year earlier, while Ford's rose 13 percent and Chrysler's 14 percent. Most automakers reported strong gains as Americans flowed into dealer showrooms, drawn by model-year closeouts, low-interest financing and appealing new models. Analysts expect overall sales to rise around 20 percent when companies finish reported later Tuesday.

General Motors and Chrysler reported double-digit sales of new vehicles, while Ford’s rose 7 percent. Toyota sales were up 60 percent.

Chrysler sales rose 20 percent last month, its strongest April in four years. General Motors and Ford reported slight dips for the month. Overall, the U.S. auto industry appears strong.

When it comes to the economic recovery, timing is everything — and so far, it’s been off. Take the market performance of housing and autos, two big-ticket purchases that traditionally have moved in tandem. But new data released this week showed housing prices and new home sales dropping off at the same time that auto sales were peaking.

The jobs were there, more than 1,000, with everyone from the Detroit automakers to Korea’s Hyundai looking to hire. What was missing were the job-seekers.

The auto industry looks set to ride the appeal of smaller cars to its best monthly performance since 2008. Chrysler reported a 34 percent increase in March auto sales.