Springtime Comes Early for Automakers

03/04/96

Reuters reported that car sales for GM, Chrysler, and other auto manufacturers rose dramatically and somewhat unexpectedly, last month. 13 automakers reported their market results for February: they are seeing the kind of volume normally associated with the spring selling season.

The daily selling rate rose 7.4% above what the industry saw last year. Industry analysts say that if Ford Motor Co. reports sales gains similar to those reported by other carmakers, the industry's seasonally adjusted annual selling rate for February might reach 16 million light trucks and cars--close to the best monthly performance since the last recession.

Analysts attribute the rise in sales to good weather, big rebates, and leap day, which added an extra selling day to this year's February. Chrysler offered rebates in excess of $1,000 on some vehicles and reported the largest gain, with total sales of 207,839, up 19.8% over February 1995. GM sold 399,383 cars, and increase of 5 percent over February, 1995. GM's sales gains were concentrated in Cadillacs (24.3%), Chevrolet cars (13.3%), Saturns (8.4%), and Chevrolet trucks (6.9%). Oldsmobile and Pontiac sales fell 7.3% and 4.8%, respectively.

Honda, Nissan, and Subaru also posted increases in sales, which focused mostly on their North-American built cars: Honda sales went up 19.6% overall (56.3% rise in American built car sales), Nissan reported an 8.3% overall gain (44.3% in US built sales), and U.S. Subaru sales went up 52.5%, mostly because of their popular Outback, a four-wheel-drive wagon. Total Toyota, Mazda, and Mitsubishi sales dropped in February.

Paul Dever -- The Auto Channel