October Car Sales Coming In Strong

A double digit boost making October the best car and truck sales month since September of 2008, just before sales collapsed. The only months which saw a better sales rate were inflated by the federal "Cash for Clunkers" program.

"We're very pleased with our October sales," says Ralph Kisiel of Chrysler, which had a 37 per cent year-over-year increase. "Even more exciting, we'll be launching eleven new or significantly refreshed vehicles during the final two months of this year."

Chrysler showrooms were very empty in October of 2009. But, October of 2010 saw the start of the arrival of new products.

"Grand Cherokee sales were up 291 per cent over last October," Kisiel told WWJ AutoBeat Reporter Jeff Gilbert. "With new vehicles like that, we are attracting customers into the showrooms."

New products are helping most automakers. The subcompact Fiesta has brought in more customers every month for Ford.

"All that's good," said George Pipas, sales analysis manager at Ford, where sales are up 19 per cent. "But the very best thing about the Fiesta is who's buying the car, where they are buying it and how they are equipping it."

Pipas says the Fiesta has seen very strong sales in California, which has not been a strong market for Ford. Fiesta owners are also adding on a lot of more expensive options.

At General Motors, sales were up 3.5 per cent year-over-year, with sales of the four core brands up 13 per cent.

"The good thing about October is there was less bad news than there was in the past, and consumers are starting to show some optimism," said Don Johnson, GM's director of sales operations.

Sales of Cadillacs are up 41 per cent, Buick's 36 per cent.

"The main thing that's driving Buick is really new customers," said Johnson. "Thirty to forty per cent of people coming into buick showrooms and buying are trading in competitive makes."

Johnson said new products like the Chevy Cruze are doing well. He said GM is not changing its projection that the entire year will see about 12 million vehicles sold.

"We've been saying for the last couple of months that we do see that positive climb," said Johnson. "This last month is another step in that climb."

One brand showing weakness was Toyota, with sales off 4.4 per cent over last year.

"Toyota was down year over year despite industry trends, but this is in part because the company actually had a very strong month last October – one of their best in the year -- which wasn't in line with auto sales seasonality," said Edmunds.com senior analyst Michelle Krebs, in a published statement. "However, the Toyota recall hangover is lingering and the company has no significant new product."

Other import brands did well. Hyundai and Kia posting 38 per cent sales rises. Honda, BMW, Volkswagen and several other brands also with double digit increases.

The seasonally adjusted annual sales rate for October--the yardstick by which sales are measured--topped 12 million for the first time this year. Most analysts expect the industry to sell between 11.5 and 12 million units in 2010, and top 12.5 million in 2011.

Ford's George Pipas says they remain on that pace as 2010 comes to an end.

"As long as they continue to steadily improve, that's a positive, especially as we're about to begin 2011."