NEW YORK—U.S. auto sales finished 2011 on a surge, as Detroit automakers all reported higher sales figures during the last few weeks of last year.
General Motors Co., Ford Motor Co., and Chrysler Group LLC all said that December vehicles sales exceeded expectations as consumers shrugged off continued high unemployment rates and took advantage of large promotions and discounts.
Sales at GM rose 4.5 percent last month, on the back of the Chevrolet Cruze compact car, which saw a 53 percent increase in sales.
Sales at rival Ford gained 10 percent, mainly due to sales of Ford’s SUVs, including the new Ford Explorer. Chrysler, the smallest of the U.S. automakers, reported a whopping 37 percent gain. Chrysler’s gains were driven by good results from its Jeep segment.
December’s figures underscores the automotive industry’s rebound in 2011, as overall vehicle sales gained 10 percent, the best year since 2008. They also represent impressive turnaround for GM and Chrysler, both of which underwent bankruptcy restructuring in 2009. For the year, Ford sales increased 17 percent while Chrysler’s increased by 26 compared to 2010. GM finished the year up 14 percent. All three companies benefited from new models introduced last year.
“It’s been a phenomenal turnaround for the Big Three,” Edmunds.com analyst Michelle Krebs said in an interview with Bloomberg.
“Chrysler and GM have the American taxpayer to thank for that, but in the end, it’s been a good investment.”
In a conference call with analysts this week, GM’s Vice President of U.S. sales Don Johnson remarked that the industry is still operating within recessionary parameters, meaning that growth in the overall economy and meaningful increase in available jobs should further stimulate sales going forward.
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