Demand for the new Dart helped Dodge outperform its domestic rivals last month.
For those wondering about the health of the overall U.S. economy, unexpectedly strong September car sales – which reached their highest level since March 2008 – send a signal things are on the right track.
The Seasonally Adjusted Annual Rate of sales, or SAAR, scrapped up against the 15 million mark, countering earlier forecasts by some analysts expecting the strong pace of the first half of 2012 would slow during the final months of the year.
That said, September’s numbers, while great for some makers, lagged for others, though even the so-so figures from Ford and General Motors were generally greeted with optimism.
“I’m not worried about this (auto market) running out of steam anytime soon,” said Jesse Toprak, chief analyst for data firm TrueCar.com.
The overall numbers for September outperformed even the upbeat estimates that industry observers were posting as the month drew to a close, the SAAR pegging 14.96 million units, according to MotorIntelligence, the highest figure since the U.S. industry reported an adjusted sales rate of 15.11 million in March 2008 – and a substantial jump from the 13.14 million SAAR seen in September 2011.
Detroit’s two domestic makers were on the low side of the equation last month, however, both General Motors and Ford posting modest sales increases for September, leaving each with a smaller share of the overall market as Toyota, Honda, Hyundai, Kia and Volkswage posted big double-digit sales increases.
Luxury brands such as Jaguar, Porsche, Mercedes-Benz and BMW also reported sales increases. But the increases by BMW and Mercedes were also relatively modest, lagging behind the industry’s increase for the month.
The domestic heavy hitter, meanwhile, was the Chrysler Group which posted its 30th consecutive month of sales gains during September, thanks to growing demand for its new 2013 Dodge Dart.
The unevenness of September sales was reflected by the fact that while Japanese makers, on the whole, continued their recovery from the March 2011 earthquake and tsunami, Mazda and Nissan reported a drop in sales. And Suzuki disclosed its sales had dropped to fewer than 2,000 units for the month.
Nonetheless, “The auto industry had another very encouraging month in September,” said Bill Fay, Toyota group vice president and general manager. “Our dealers got off to a great start over Labor Day weekend and that momentum carried through the rest of the month, as Camry continued to stretch its lead as the most popular car in America.”
And even though Ford has a mediocre month, sales rising just 4%, the maker’s executives remained upbeat.
“As more buyers look for new vehicles across the country, Ford is ready with our strongest lineup ever of fuel-efficient cars, utilities and full-size pickups,” said Ken Czubay, Ford vice president, U.S. Marketing, Sales and Service.
“Fuel economy remains one of the most important features customers want most today, and Ford is answering the call with five vehicles that deliver 40 mpg or better — with another three on the way by year-end,” he said.
For GM September was a case of deciding whether the glass was half-empty or half-full. The maker actually had its best sales since 2008 as it delivered 210,245 vehicles, up 1.5% compared with a year ago. New products helped drive a 29% increase in passenger car sales, GM officials said.
“Passenger cars have been the launch point for a broad and deep GM product offensive,” said Kurt McNeil, vice president of U.S. sales operations. “Auto sales will continue to be a bright spot for the U.S. economy, which is particularly good news for GM as we walk into an even stronger cadence of new products in 2013 and 2014,” he said.
Chrysler’s strong performance was buoyed by both the strong demand for the new Dodge Dart and by the sudden surge at its Fiat brand – which struggled during its 2011 return to the U.S. market after a two-decade absence. The Fiat brand set an all-time sales record with 51% increase and the Dodge brand was up 18%, marking its best September since 2007.
“Going forward with our current product line up, record low interest rates and a stable U.S. economy, we remain optimistic about the health of the U.S. new vehicle sales industry and our position in it,” said Reid Bigland, presdent and chief executive officer of the Dodge Brand and Head of overall Chrysler U.S. Sales.
Paul A. Eisenstein contributed to this report.