Automakers Post Double-Digit August Sales Increases

DETROIT (WWJ) -- The domestic three auto companies out-dueled a hurricane and Wall Street woes to post better than expected sales numbers for August.

All three companies posted double-digit sales increase, with Chrysler leading the way with a 31 per cent sales hike. That's Chrysler's best August showing in four years.

"In spite of a volatile market, Chrysler managed to significantly outperform the industry again in August with retail sales up 42 percent," said Reid Bigland, president and CEO of Dodge Brand and head of U.S. sales, in a statement. "Last month also represented our 17th-consecutive month of year-over-year sales growth, and on the back of our 16 all-new or significantly-refreshed products I see that trend easily continuing into the fall."

GM sales were up 18 percent.

"We're pleased with our performance," said Don Johnson, GM's sales operations manager. "We're gonna see total and retail market share increase this month, which is seven of the last eight months. It really is due to the products we have in the marketplace."

It was a strong month for the small Chevy Cruze, and GM's small SUV's, the Chevy Equinox and GMC Terrain. GM says its pickup sales were up 29 per cent.

"We see that as a good indicator of future economic growth," said Johnson. "Those businesses do need to replace their vehicles. It does mean that—even among all the volatility-- there's still work out there for them."

Ford posted an 11 percent sales increase in August.

"Overall, it was a good month considering the volatility in the financial markets, and the relatively weak economic readings we saw in the month of August," said Ford Sales Analysis Manager George Pipas.

Ford sales are up 11 percent year-to-date. Pipas says it was a good month for utilities, the Lincoln brand, and small cars like the Fiesta and Focus.

Among the imports, Nissan successfully got out the message that it had products in stock. Its sales were up 10 percent. Honda sales were down 24 percent. Toyota sales off 16 percent. That means Toyota again finished behind Chrysler in total sales.

"Just like in May and June, Chrysler has beat Toyota in terms of sales volume," said Edmunds.com Senior Analyst Jessica Caldwell, in a statement. "That said, Toyota is doing better than they have been and that trend is likely to continue, especially when new Camry numbers start rolling in. Lexus had its second best month of the year in terms of sales, so their aggressive incentives seem to have worked to some degree."

Volkswagen had a strong showing in August, with sales up 10 percent.

"Volkswagen had a decent August despite the absence of two key players," said Edmunds.com Senior Analyst Michelle Krebs, in a statement. "The redesigned Beetle and Chattanooga-built Passat are about to launch but haven't showed up in VW's sales totals. When they do, they should give VW a healthy lift,"

The end of summer is expected to mean better things for the auto industry. New products will be in the marketplace, with new deals, and lots of advertising. Japanese dealerships will also be restocked with products.

While some analysts have backed off on sales projections for the year, GM's Don Johnson says they aren't backing off on their expectation that 2011 will end with 13 to 13.5 million vehicles being sold.

"We think we're gonna get back on track with slow and steady growth for the rest of the year, due to inventories building at some of our competitors, and—I think—some more stability on the consumer's mind."

Many of those consumers have been sitting on the sidelines, waiting for an excuse to go to the showrooms, says Jessica Caldwell of Edmunds.com.

"I think there's still a lot of pent up demand out there in the marketplace, with regards to the Japanese automakers," she said. "We're seeing favorable gas prices. That's definitely going to help. Usually, at the end of the year we see a strong push in advertising from the auto makers, and that usually spurs showroom traffic."

Others are more cautious. Ford's George Pipas says while slow growth is likely, there are still a lot of uncertainties to deal with.

"The economic picture is very cloudy, there's a lot of uncertainty. Most of the economic data points that are coming in—particularly consumer confidence—are very weak."

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