Auto Sales Cruise Ahead in October

On Tuesday major auto manufacturers indicated that their October sales rebounded significantly following a weak September.

The increase to the US annualized sales rate was nearly 20 percent better than September's measure. Early estimates show the bump adding $5 billion, or roughly 1.5% to October's retail sales numbers versus September's readings.

It now appears as though consumers no longer needed cash-for-clunker rebates to commit to new auto acquisitions in October.

GM, Ford (F) and Nissan (NSANY) all reported that their sales are now up from a year ago.

Jessica Caldwell, senior analyst at auto industry tracker Edmunds.com said, "We are trending in the right direction," and "it should be easier for auto companies to report year-over-year growth from this point on."

Ford -- which reported a strong profit on Monday -- claims that increased production in October will help to replenish diminished supplies on dealer lots. Further, Ford sales management points to strong restocking demand through the end of 2009.

Comments

[Mad Hedge F...:]

vgy ) I can’t imagine a finer example of “creative destruction” than Fisker Automotive’s takeover of a General Motors plant in Boxwood, Delaware that once built unwanted Pontiacs and minivans, but closed in July. The startup car maker will use a $528 million US government loan to build 100,000 plug-in hybrid electric cars a year that will sell for under $40,000. The firm’s Danish entrepreneur founder, Henrik Fisker, describes the new car as a “green BMW.” The firm plans to export at least half its production. The Irvine, California based company is already building a high end electric sports sedan in Finland called the “Karma” for $87,500. Joseph Schumpeter’s spirit must be smiling.

Nov 04 06:25 AM

[User 472386:]

only an idiot would buy a new car in this economy, unless of course he was able to pay cash for it.

Nov 04 11:06 AM