Car Sales End 2010 On A High Note

by Jeff Gilbert
WWJ AutoBeat Reporter

INTERVIEW: GM Vice President Don Johnson talks about 2010 sales.

A strong December allowing major car companies to finish 2010 with better than expected sales…setting the stage for a stronger year in 2011.

There's no question customers are heading back into showrooms," says J.D. Power director of global forecasting Jeff Schuster. Schuster saying the big Christmas week storms didn't seem to have an impact on sales, which grew stronger as the fourth quarter went on.

"The industry did see further recovery and stability in the fall," said Schuster. "So, to end December on an even stronger pace, I think really sets up 2011 for further recovery as we had been expecting."

Hyundai had the best year of any major manufacturer. Toyota, hurt by recalls, saw its sales off .4 per cent. Some analysts feel it will have trouble winning customers in 2011.

"With other brands such as Hyundai, Kia, and Buick gaining momentum, it's going to be hard for Toyota to regain its sales share with its old stable of products," said Edmunds.com senior analyst Jessica Caldwell in an emailed statement. New product is more important than ever as other brands have shown that a comeback is possible if you offer fresh, well-executed new vehicles."

All three of the domestic automakers saw strong gains in 2010. Chrysler sales were up 17 per cent.

"Chrysler group sales of 1.1 million units last year; That is consistent with our sales objective that we presented in our five year business plan in November of 2009," said Chrysler spokesman Ralph Kisiel.

Ford saw a sales increase of 15 per cent, if you include the departed Volvo brand in last year's figures. The core Ford, Lincoln and Mercury brands were up 19 per cent.

"In many respects, 2010 was one of Ford's best years ever," said Ford sales analysis manager George Pipas.

Ford's market share gaining a full point to 16.4 per cent, and Ford regaining the number two sales spot in the U.S., just behind General Motors.

GM sales up six per cent year over year, with the four "core brands"—Buick, Chevrolet, GMC and Cadillac—up 21 per cent.

"A big part of it as you look back at 2010 is the consistency of how we've approached the market," said Johnson. "We've had a number of very successful new product launches. We focused our resources on four brands only."

Johnson says December was General Motor's best month of the year.

"I do think it sets the stage for, let's say, a cautiously optimistic 2011."

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