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Automotive Consumer
AUTOS: U.S. Sales Surged In February
Auto industry rebounds with a 27 percent annual gain as new models and aggressive incentives boost results.
The new Cadillac CTS Coupe helped pull the GM division to a 70 percent annual sales gain in February. (Photo: Cadillac)
February auto sales in the U.S. surged during February, spurred by aggressive marketing, new models and strong incentives, gaining 27 percent over a lackluster February 2010.
Analysts are calling the sales results for the first two months of the year a rebound that bodes well for the customarily strong spring selling season.
General Motors saw the strongest boost in sales for its four surviving brands, up a stout 46 percent with sales of Buick and Cadillac soaring 73 percent and 70 percent, respectively, as new models hit showrooms. GM was also one of the biggest spenders on incentives during the month.
“GM’s strong retail gain is a direct result of their aggressive incentive spend,” said Edmunds.com Senior Analyst Jessica Caldwell. “Currently, GM’s inventory is relatively low so there is no dire need for this incentive spend; it’s simply a play to gain market share.”
The big rise in GM sales was all according to plan, said Don Johnson, vice president of U.S. Sales Operations, with new and redesigned cars and crossovers luring in the customers.
“Our plan was to get off to a quick start this year, and we did just that,” Johnson said. “Having the right vehicles in inventory, combined with aggressive advertising and targeted consumer marketing has been the key to our success in the first two months this year.”
Toyota received a much-need sales increase with a 42 percent gain over February 2010. But that has to be taken in context; last February, Toyota sales tanked as the unintended-acceleration and recall controversy took hold and sales of key models were suspended.
The Japanese automaker has been struggling with its comeback, and scored as the only major automaker to record a U.S. sales decline during 2010.
Chrysler saw a rise in sales over its slack days of February 2010 with a 13 percent increase powered by an 81 percent boost in Ram truck sales and a 23 percent gain for Jeep. That countered a drop in Chrysler Division sales of 31 percent.
“Chrysler’s February sales volume indicates there is some strength in the company’s redesigned models,” Caldwell said.
Ford continued its rise in sales with a 10 percent boost compared with a strong February 2010. The Ford division, helped by such popular new models as the redesigned Explorer, the Edge, Fusion and F-150 pickup, was up 22 percent.
The Lincoln luxury division was down 11 percent, though, partially reflecting the lost showroom traffic caused by the demise of Mercury.
Nissan and Honda both did well in February, reporting gains of 32 percent and 22 percent, respectively. A powerful dose of incentives was a major factor in Nissan’s success, Caldwell said.
“Nissan turned on the incentives in February, so it’s no wonder they had such success selling cars this month,” the analyst said. “We estimate that Nissan brand had a 36 percent lease penetration – higher than any non-premium brand in February. Such incentives are good for short term sales but will hurt Nissan’s residual values.”
Among the smaller Japanese brands, Subaru continued its success with a 20 percent increase, Mazda was up 14 percent, Suzuki added to its recent comeback with a 20 percent rise and Mitsubishi, which had been looking tattered, scored a major boost of 72 percent as its new and significantly redesigned models hit showrooms.
Analysts are calling the sales results for the first two months of the year a rebound that bodes well for the customarily strong spring selling season.
General Motors saw the strongest boost in sales for its four surviving brands, up a stout 46 percent with sales of Buick and Cadillac soaring 73 percent and 70 percent, respectively, as new models hit showrooms. GM was also one of the biggest spenders on incentives during the month.
“GM’s strong retail gain is a direct result of their aggressive incentive spend,” said Edmunds.com Senior Analyst Jessica Caldwell. “Currently, GM’s inventory is relatively low so there is no dire need for this incentive spend; it’s simply a play to gain market share.”
The big rise in GM sales was all according to plan, said Don Johnson, vice president of U.S. Sales Operations, with new and redesigned cars and crossovers luring in the customers.
“Our plan was to get off to a quick start this year, and we did just that,” Johnson said. “Having the right vehicles in inventory, combined with aggressive advertising and targeted consumer marketing has been the key to our success in the first two months this year.”
Toyota received a much-need sales increase with a 42 percent gain over February 2010. But that has to be taken in context; last February, Toyota sales tanked as the unintended-acceleration and recall controversy took hold and sales of key models were suspended.
The Japanese automaker has been struggling with its comeback, and scored as the only major automaker to record a U.S. sales decline during 2010.
Chrysler saw a rise in sales over its slack days of February 2010 with a 13 percent increase powered by an 81 percent boost in Ram truck sales and a 23 percent gain for Jeep. That countered a drop in Chrysler Division sales of 31 percent.
“Chrysler’s February sales volume indicates there is some strength in the company’s redesigned models,” Caldwell said.
Ford continued its rise in sales with a 10 percent boost compared with a strong February 2010. The Ford division, helped by such popular new models as the redesigned Explorer, the Edge, Fusion and F-150 pickup, was up 22 percent.
The Lincoln luxury division was down 11 percent, though, partially reflecting the lost showroom traffic caused by the demise of Mercury.
Nissan and Honda both did well in February, reporting gains of 32 percent and 22 percent, respectively. A powerful dose of incentives was a major factor in Nissan’s success, Caldwell said.
“Nissan turned on the incentives in February, so it’s no wonder they had such success selling cars this month,” the analyst said. “We estimate that Nissan brand had a 36 percent lease penetration – higher than any non-premium brand in February. Such incentives are good for short term sales but will hurt Nissan’s residual values.”
Among the smaller Japanese brands, Subaru continued its success with a 20 percent increase, Mazda was up 14 percent, Suzuki added to its recent comeback with a 20 percent rise and Mitsubishi, which had been looking tattered, scored a major boost of 72 percent as its new and significantly redesigned models hit showrooms.
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