Nissan scores an all-time sales record.
Undeterred by rising fuel price, new vehicles sped out of showroom during March at a rate the industry hasn’t seen since the start of the Great Recession.
Nissan North America sales hit an all-time high, while Audi had its 15th consecutive record month. Toyota reported its highest March sales since 2008. On a seasonally-adjusted annual rate, or SAAR, sales shot to 14.7 million for March, well in excess of the roughly 14 million most industry analysts are expecting for all of 2012.
The question is whether the pace will continue. “I don’t expect it to,” cautions David Sullivan, of the consulting firm, AutoPacific, Inc. He fears the sharp rise in fuel prices will “choke things off” when potential buyers have to divert money from their new car budget to fuel.
But other analysts counter that, if anything, motorists may see that as reason to trade in. Significantly, General Motors said it sold more high-mileage offerings than at any time in its history – vehicles getting at least 30 mpg on the highway accounting for 40% of its overall mix last month. Small car sales, in particular, accounted for 29% of Ford Motor Co.’s overall sales – even though demand for the subcompact Fusion actually declined while sales of the compact Focus model were up by a third.
The shift in the market is not just limited to the small car segment, said Ford’s President of the Americas Mark Fields, who said that for the 11th month in a row Ford sold more V-6-powered F-Series full-size pickups than traditional V-8s.
Domestic automakers, General Motors Co. and Chrysler Group, again reported double-digit sales increases during March, the big maker up 12%, the latter gaining 34% year-over-year. Ford, which saw a 5% jump, reported its best March sales in five years despite the threat from rising fuel prices.
“The economic recovery and a deep bench of fuel-efficient cars and crossovers have been driving our sales for more than a year, but the combined impact has never been stronger than it was in March,” said Don Johnson, vice president, U.S. Sales Operations. “Since the last time fuel prices spiked, both the economy and GM’s product portfolio are undeniably stronger. We’re now strong across the board in cars, crossovers and trucks,” Johnson added.”
Significantly, after a series of recent setbacks – including a 5—week production shutdown — GM’s well-publicized plug-in hybrid, the Chevrolet Volt, came charging back in March. Sales totaled 2,289, a 50% increase over December, when reports emerged of several battery fires following federal crash tests of the plug-in. The March total was the best since Volt was introduced in late 2010.
Volt outsold rival Nissan Leaf by nearly four-to-one last month, though the Japanese maker insists its battery-car sales are strained as Leaf is rolled into new markets around the world. Overall, Nissan also reported record sales for its complete line-up in March as deliveries climbed 12.5%.
“Our record March sales show that Nissan’s combination of quality and value continues to put us at the top of more customers’ shopping lists,” said Al Castignetti, vice president and general manager, Nissan Division. “With new versions of five of our highest volume models coming in the next 15 months, including the all-new 2013 Altima, we’re going to keep our foot on the accelerator for even better
gains in the months to come.”
March is likely to be a month Japanese makers will look back at fondly. With inventories effectively back to normal after the shortages caused by last year’s earthquake and tsunami, makers like Nissan, Honda and Toyota appear to be benefitting from pent-up demand, drawing back buyers who decided to wait rather than switch brands.
Toyota topped 200,000 sales in March, its best figure for the month since 2008, with sales up 11.2% overall. It was the maker’s best performance since the Cash for Clunkers deal ended, said Jeff Bracken, Toyota’s vice president for sales.
Subaru, Volkswagen, Audi and Mercedes-Benz all reported double-digit sales gains for last month, meanwhile. Mazda also reported a 5% increase, while Hyundai said it had record sales in March.Jaguar sales increased by double digits a performance matched by its British sibling, Land Rover.
Porsche was one of the only carmakers to suffer a sales drop in March, its volumes down 5% for the month. It’s unclear if Porsche was impacted by rising gas prices but the maker is clearly aware of the shifting market trends and will this week introduce a diesel-powered version of its Cayenne sport-ute at the NY Auto Show. (Click Here for that story.)
For now, “Rising gas prices continued to drive strong customer demand said Ken Czubay, vice president, U.S. Marketing, Sales and Service.
Whether that will continue in the months ahead remains to be seen. A sharp dip in other economic indicators could be followed by a slowdown at automotive showrooms.
Paul A. Eisenstein contributed to this report.