U.S. auto sales rose in March after increased incentives helped motivate buyers according to a report in automotive magazine, Autoweek, last Friday.
General Motors Co., Ford Motor Co., and Toyota Motor Corp. all posted increased sales in March. GM reported a 21 percent increase, while Ford and Toyota reported over 40 percent sales increases.
Toyota sales grew by 40 percent amidst marketing campaigns to counter the negative perception of the Japanese brand after a series of three safety recalls due to steering column, accelerator pedal, and brakes totaling 8.5 million vehicles worldwide.
Honda also saw an increase in March sales by 23 percent as compared with last year’s figures.
Despite the increased sales for the month of March, most experts are saying the figures are not a sign that an economic recovery has taken place.
Jessica Caldwell, an analyst for auto review site Edmunds.com told Associated Press, “I still don’t see a huge, steady demand.”
The revenue from the higher sales figures have been offset by extensive advertising campaigns highlighting promotional incentives to lure potential buyers to dealerships.
“[The figures from March] shouldn’t be viewed as a sign of economic recovery because automakers had to shell out a lot of money to draw in customers,” said Caldwell.
“Retail sales were really artificially inflated by huge incentives going on in the marketplace and did not reflect true demand. April will be a good indicator of real consumer demand,” she added.
Warmer temperatures and increased consumer confidence also played a part in the rise with a March index of 52.5.
Many analysts suggest that increased auto prices and a more closely aligned forecast result in lower volume production as a whole.
General Motors Co., Ford Motor Co., and Toyota Motor Corp. all posted increased sales in March. GM reported a 21 percent increase, while Ford and Toyota reported over 40 percent sales increases.
Toyota sales grew by 40 percent amidst marketing campaigns to counter the negative perception of the Japanese brand after a series of three safety recalls due to steering column, accelerator pedal, and brakes totaling 8.5 million vehicles worldwide.
Honda also saw an increase in March sales by 23 percent as compared with last year’s figures.
Despite the increased sales for the month of March, most experts are saying the figures are not a sign that an economic recovery has taken place.
Jessica Caldwell, an analyst for auto review site Edmunds.com told Associated Press, “I still don’t see a huge, steady demand.”
The revenue from the higher sales figures have been offset by extensive advertising campaigns highlighting promotional incentives to lure potential buyers to dealerships.
“[The figures from March] shouldn’t be viewed as a sign of economic recovery because automakers had to shell out a lot of money to draw in customers,” said Caldwell.
“Retail sales were really artificially inflated by huge incentives going on in the marketplace and did not reflect true demand. April will be a good indicator of real consumer demand,” she added.
Warmer temperatures and increased consumer confidence also played a part in the rise with a March index of 52.5.
Many analysts suggest that increased auto prices and a more closely aligned forecast result in lower volume production as a whole.
