The United States automobile sales increased last month, helping Detroit Automakers to defy the sluggish economy.
The carmaker who benefited the most last month was Chrysler. The automaker reported that its auto sales rose by 27 percent. Chrysler reported on Tuesday that the company has sold more than 114,500 light trucks, cars and Jeeps. It was the best month for Chrysler since the past five years and for the other carmakers too the month was the fastest pace of sales seen this year.
General Motors Co (NYSE:GM) reported the slowest growth in October, with only sales of 186,895 units, a growth of around 1.8 percent. Ford Motor Co. (NYSE:F) announced a growth of 6.4 percent, with the sale of 167,502 vehicles. Other carmakers to report impressive sales were Volkswagen AG, with sales increase of 40 percent and Nissan with a sales jump of 18 percent. Nissan got a boost from its deliveries of the Versa subcompact car, which grew by 47 percent. The rest of the carmakers selling in North American markets are yet to report their figures.
GM had earlier estimated that the sales in October will be close to 13.4 million cars and trucks. Although among the lowest in car makers, the figures will be the fastest pace of growth that the company The company also expects the sales to remain above the 13 million mark in the coming two months.
The surge in car sales in October is attributed to the fact that customers held back on new purchases since the past few months because of the fear of a double dip recession. Many customers pushed back new purchases since 2009.
Japanese manufacturers such as Toyota, Nissan and Honda are able to finally get proper supplies of their inventories, which were in short supply because of the March 11th earthquake and tsunami in Japan. The two manufacturers are offering numerous discounts to lure the customers to their cars. Many customers who were considering purchasing other second hand cars have gone for new car purchases because of the offers provided by car makers.
The Jee sales of Chrysler rose by 25 percent or the sale of 35,733 vehicles. Around 21,037 pick up trucks were sold, representing a 21 percent growth. Overall sales to individuals increased by 40 percent.
Ford also saw an increase in the sales of its pick up trucks, which are high margin vehicles. Sport Utility vehicles at Ford saw a growth of 30 percent, when compared to last month.
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