Salon.com > Sharon Silke Carty

Auto sales up for first time since the recession

Tue, 04 Jan 2011 22:25:00 +0000

Auto sales rose in the United States last year for the first time since the recession. They're still far from what they were just a few years ago -- but that's just fine with the downsized auto industry, which can post profits even if they sell millions fewer cars and trucks.

For the year, car and truck sales came in at 11.6 million, up 11 percent from last year, automakers reported Tuesday. For December alone, sales were 1.14 million, also up 11 percent from a year earlier.

While the figures have some in the industry talking about a return to the glory days, it's a fragile idea. Rising gas prices or more economic trouble could still shake the confidence of American car-buyers.

But for now, executives are optimistic about this year. General Motors, Ford and Toyota all predict sale will come in at 12.5 million to 13 million for 2011. It will take years, analysts expect, to get back to the peak sales of the middle of last decade -- more like 17 million.

"The economic downturn has lasted quite a while," says Jessica Caldwell, director of pricing and analysis for consumer website Edmunds.com. "It's going to be slow and gradual rather than a fast bounceback."

Trucks outsell cars by widest margin in five years

Thu, 04 Nov 2010 22:06:00 +0000

Trucks outsold cars by the highest margin in nearly five years in October, a small sign that the economy may be starting to improve.

These trucks aren't the tractor-trailers that haul freight. They were vehicles such as pickups, SUVs, minivans and smaller SUVs, which made up 54 percent of all U.S. vehicle sales according to industry tracker J.D. Power and Associates, while cars made up 46 percent of the market. That's the biggest margin of difference between the two categories since December 2005, when trucks accounted for 56 percent of sales.

Strong truck sales make economists giddy because it means people are willing to spend money again. Small business owners feel comfortable enough to buy a new pickup truck or delivery van for their company; and regular folks are confident enough in their jobs and finances to take on beefy SUV payments.

Here are the trends behind the stronger truck sales:

-- People are spending more. Personal savings rates are coming down. The most recent figures show the rate has decreased from a yearly high of 6.4 percent in June to 5.3 percent in September - meaning people don't feel the need to hoard cash at the bank.