Demand for products like the 2011 Impreza WRX have helped Subaru set another U.S. sales record.
Subaru set an annual all-time sales record last month as the industry-wide sales rate surpassed the 12 million unit level during November.
But the Japanese automaker isn’t the only celebrating what was the best month for the auto industry since the short-lived, government-funded Cash for Clunkers program. Audi, for one, had its best November ever. And, with the rare exception of Toyota, all the major domestic, Asian and European automakers came out of November with newfound momentum.
“We have a formula that works,” said Timothy M. Colbeck, senior vice president of sales, Subaru of America, Inc. So far this year, Subaru sales are up 22% to a record 237,126 units.
“Our vehicles are right-sized, come with all-wheel-drive standard, and are known for safety, reliability, fuel economy and spirited driving. Add into that mix excellent value for money and it’s clear why we are seeing sustained demand for our brand,” said Subaru’s Colbeck.
Meanwhile, champagne was being chilled at Audi’s U.S. headquarters in suburban Washington, D.C. The maker reported its eighth monthly record for 2010, and seems certain, for the first time, to push past the 100,000 sales mark.
“It is no surprise that Audi continues to remain in the coveted pole position within the luxury vehicle market with an exceptionally strong brand identity and superior vehicle offerings,” said Audi of America Chief Operating Officer Mark Del Rosso.
Significantly, November’s numbers suggested this is “a retail-driven recovery,” rather than a sign the industry is dumping cars in fleets, as they have in decades past, said analyst Rod Lache, of Deutsche Bank.
Noting that overall sales were up 12%, year-over-year, and adjusted for the fact that November 2010 had one extra selling day, Lache was upbeat about the signs for the future, seeing “some upside from the trajectory of improvement” that could bring a 13.5 million annual market in 2012.
The mood in Detroit was decidedly different than a year ago, Ford Motor Co., General Motors and Chrysler Group all posting post double-digit sales increases, again, during November as new vehicle sales continued to pick-up momentum.
“With our strongest-ever line of products, we’re pleased to see more signs the economy is growing and the demand for new vehicles is increasing,” said Ken Czubay, Ford vice president, U.S. Marketing, Sales and Service.
Czubay said year-to-date sales of Ford, Lincoln and Mercury products total 1.74 million, up 21% from a year ago. Moreover, Ford’s sales are growing at double the overall industry rate, with the maker on track to gain market share for the second year in a row – a trend it has not matched since 1993, he said.
General Motors reported an 11% year-over-year sales increase. However, sales of its four-core brands gained 21% with balanced contributions from Chevrolet, Buick, GMC and Cadillac cars, crossovers and trucks. For the first 11 months of 2010, the four marques have gained a collective 22%, which will translate into a much-needed increase in market share, said Don Johnson, GM’s vice president, U.S. sales operations.
Chrysler Group said its sales increased 17% during November, marking the company’s eighth consecutive month of year-over-year sales increases.
Demand for the 2011 Jeep Grand Cherokee was a major factor for Chrysler, with sales of the new ute jumping 256% over November 2009, while Ram pickup truck sales increased 86%, and sales of heavy-duty vehicles increased 131%. All three lines are among the most profitable in the company’s portfolio of new vehicles.
“We are pleased with the sales momentum that has been building this year, and elated now that we are showing off the vehicles that we’ve been talking about,” said Fred Diaz, President and Chief Executive Officer – Ram Truck Brand and Lead Executive for U.S. Sales.
Kia and Hyundai reported major increases in sales, posting sales gains in excess of 40% last month.
Nissan also reported a 26.8% increase in sales for November and Honda reported a 16.1%. Suzuki, Mitsubishi and Mazda were into double-digit gains, as well.
Volkswagen of America, Inc. was up 24.2% for November. The new Volkswagen Jetta continues to gain ground, selling 11,153 sedan and SportWagen models for the month, a 40.2% increase over last year.
Mercedes-Benz reported a 15.6% increase in sales. However, sales by the Bloomfield Hills, Michigan-based Smart USA continued a painful downward spiral, tumbling by 61%. The independently-operated distributor of Daimler’s minicar line is struggling to survive until it can launch a new 4-seater being developed in cooperation with France’s Renault.
While BMW couldn’t match the record numbers of its rival, Audi, the Bavarian maker nonetheless saw sales jump 27% for the month.
With the exception of Smart, the only other maker to report a loss for November was Toyota Motor Sales, where sales dropped 7.3% from the same period last year as it continued to lose market share to both its American, Japanese and Korean rivals.
In a conference call with reporters, Toyota officials tried to downplay their poor performance, noting they had consciously trimmed back on fleet sales last month. Still, that couldn’t come close to accounting for the big decline, analysts stressed, pointing to a range of factors, such as Toyota’s lack of new products at the start of the 2011 model-year.
But if anything appears to be responsible for Toyota’s ongoing setback – it was the only major marque showing a sales decline in October, as well – it’s almost certainly the Japanese giant’s ongoing safety problems. It has recalled 14 million vehicles worldwide over the last 12 months, including 11 million in the States. (What’s wrong with Toyota? For more, Click Here.)