Automotive sales in the United States posted another strong month in October as significantly lower gas prices coaxed prospective buyers into showrooms to look at larger vehicles such as SUVs and crossovers.
On a seasonally adjusted annualized rate (SAAR) basis, sales rose to 16.46 million last month, according to research firm Autodata.
That represents a seven percent increase from the 15.38 million SAAR in October 2013 and is slightly higher than the 16.43 million figure in September. It also beat the 16.3 million forecast from Edmunds.com.
“Car and truck sales have settled into a groove,” says Edmunds.com Senior Analyst Jessica Caldwell. “Dealers are welcoming a consistent flow of shoppers into their showrooms, and the pace will likely remain steady through the end of the year. With declining gas prices and strong truck and SUV sales, the industry is poised for a very busy holiday season.”
General Motors dealers delivered 226,819 vehicles last month, up just 0.2 percent year-on-year and just below the Edmunds.com projection of 231,131. Nevertheless, it was still GM’s best October in seven years.
“The US economy has steadily improved all year and now we are poised for a stronger expansion backed by an improved job market, higher consumer confidence and lower fuel prices,” Kurt McNeil, US vice president of sales operations, said.
Ford sold 188,654 vehicles in October, down 1.7 percent from a year ago but better than the 186,173 forecast from Edmunds.com.
The company’s overall sales declines were expected and tied to the plant changeover for the introduction of the all-new 2015 F-150, which features all-aluminium body that is some 700 pounds lighter than it prior model.
Chrysler reported US sales of 170,480 units, a 22 percent increase compared with sales in October 2013 and the group’s best October sales since 2001. This was in-line with Edmunds.com forecast.
This was the company’s eighth month of double-digit growth this year and 55th-consecutive month of year-over-year sales gains, Reid Bigland, head of US sales, noted.
Toyota-owned divisions sold 180,580 units in October, which represents a 6.9 percent year-on-year increase.
“October vehicle sales were the best for the month in 10 years as an improving economy and lower gas prices drove strong SUV sales,” Bill Fay, Toyota division group vice president and general manager, said.
As for other carmakers, Honda and Nissan reported that sales increased by 5.8 percent and 13.3 percent, respectively.
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