DETROIT — The domestic auto industry’s long, slow comeback gained traction in December, as the big car companies on Tuesday reported their best monthly sales rate for 2010 and some raised their forecasts for this year. þþAutomakers ended the year with an 11 percent increase in sales in the United States over December 2009. Much of the gain was achieved without the help of big incentives and despite slight rises in fuel prices, suggesting that consumers are becoming better able to afford new cars and trucks. þþFor 2010, the industry reported total sales of almost 11.6 million vehicles, an 11 percent increase over the 10.4 million sold in 2009. The year ended on its highest note — the seasonally adjusted selling rate for December alone was 12.5 million, according to the research firm Autodata. þþBoth General Motors and Ford revised their projections for this year based on the strength of recent sales. The top two American automakers said independently that total sales in 2011 could reach 13.5 million. þþA recovery to that degree would particularly benefit the Detroit automakers, which have slashed costs and lowered their break-even points. Both G.M. and Ford are expected to report big profits for 2010 in the next few weeks, and earnings could grow substantially beyond that in a 13.5 million market. þþThe December results were buoyed again by strong sales of pickup trucks and sport utility vehicles. While sales of passenger cars grew just 1 percent, light trucks accounted for a 21 percent increase. þþChrysler had the best December among the domestic automakers, with a 16 percent increase in sales spurred by the success of its redesigned Jeep Grand Cherokee. þþFord, which passed Toyota as the No. 2 seller in the United States in 2010, reported a 6.8 percent increase in December. þþGeneral Motors, which eliminated four of its eight brands after coming out of bankruptcy last year, posted an 8.5 percent increase in December results. þþToyota’s struggles continued last month as the carmaker dealt with the fallout from the recall of millions of vehicles in the last year or so. Toyota said its sales were down 0.4 percent in 2010 and 5.5 percent in December. þþToyota was the only full-line automaker to report lower sales last year. þþG.M.’s sales rose 6.7 percent for all of 2010, punctuating a year in which it completed the largest public stock offering in history. þþ“Our sales reflect the impact of G.M.’s new business model,” Don Johnson, G.M.’s vice president for United States sales operations, said on a conference call with analysts and reporters. “The consistency of results that we achieved demonstrates the focus on our brands, dealers and customers, and how we compete aggressively for every sale, every day.” þþSales by Ford grew 15.2 percent on the year, even though it sold Volvo and closed the Mercury brand. þþThe company increased market share for the second consecutive year — the first time that has happened since 1993 — and the Fusion became the first Ford sedan to sell more than 200,000 units in a year since 2004. With its new Focus compact car arriving this year, Ford will continue its shift to more small cars and away from trucks. þþAnalysts said the over all market was stimulated by pent-up demand rather than rebates. þþ“In the last quarter of 2010, we saw a real improvement,” said Jesse Toprak, vice president for industry trends and insight at TrueCar.com, which tracks sales and pricing. “We’re sitting on some good momentum going into this year.” þþUnlike in past years, automakers did not artificially bolster sales at the end of the year by offering big deals. Incentive spending was roughly flat with November. þþ“This may have been a healthier way for the industry to recover,” Mr. Toprak said. þþToyota executives said they remained optimistic, adding that the company has several new models on the horizon, including a second member of its Prius hybrid family that will be introduced next week at the Detroit auto show. þþDonald V. Esmond, senior vice president of Toyota Motor Sales U.S.A., said on a conference call that he expected the company’s sales to grow more than the industry average this year and that 2010 was not as bad for Toyota as many people had said. “2010 was essentially an 11-month year for us,” he said, referring to a brief period when the company stopped selling many popular models to fix an accelerator pedal problem that was the subject of a big recall. þþAmong other automakers, Honda’s sales were up 21 percent in December and 6.9 percent for the year. Hyundai closed out a record-setting year with an increase of 32.6 percent in December and total sales in 2010 of 538,228 vehicles, up 23.7 percent from 2009. þþ“With other brands such as Hyundai, Kia and Buick gaining momentum, it’s going to be hard for Toyota to regain its sales share with its old stable of products,” said Jessica Caldwell, a senior analyst with Edmunds.com, a Web site that provides car-buying information to consumers. “New product is more important than ever as other brands have shown that a comeback is possible if you offer fresh, well-executed new vehicles.” þþAnd while pickup trucks were the hottest products in December, the industry welcomed its two newest high-tech fuel-sipping models to the market. G.M. said it sold 326 of its plug-in hybrid car, the Chevrolet Volt, in December, while Nissan sold 19 of its electric car, the Leaf. þþ
Source: NY Times
