Gas Rises, but So Do Auto Sales

The economy continues its slow recovery... good to see.

"By BILL VLASIC
Published: September 4, 2012

"DETROIT — In the past, nothing slowed down strong car sales faster than a spike in gasoline prices.

"But these days, consumers simply switch to more fuel-efficient models.

"Major automakers reported Tuesday that sales grew 19.9 percent in August despite higher gas prices during the month.

"Analysts said the wide range of fuel-efficient models on the market, particularly new small cars from the Detroit automakers, had helped spur demand and accelerate the industry’s recovery.

“The choices for fuel efficiency are so plentiful it’s harder for a consumer to walk away because of gas prices,” said Jesse Toprak, an analyst with the auto research site TrueCar.com.

"One underlying factor for the heavy demand is Americans’ need to replace older vehicles. The average car or truck on the road is more than 11 years old.

"So far this year, auto sales in the United States have increased 14.7 percent over the same period in 2011. The industry sold 1.28 million vehicles in August, bringing the total for the year to 9.71 million.

"The pace in August was even hotter than earlier in the year, with most major manufacturers posting double-digit percentage increases despite a rise in gasoline prices. Gas hit $3.80 a gallon by the end of the month, compared with about $3.60 in early August, according to the AAA Daily Fuel Gauge Report.

"Many of the sales gains came from the continued comeback of Toyota and Honda from their low sales a year ago in the aftermath of the earthquake and tsunami in Japan. Their resurgence was driven by big gains in sales of their most fuel-efficient models, like Toyota’s Corolla and Prius hybrid and Honda’s Civic sedan.

"The Detroit auto companies also benefited from the introduction of new high-mileage cars that filled gaping holes in their product lineups.

"General Motors, the nation’s largest automaker, said its United States sales grew 10.1 percent, to 240,000 vehicles, in August. The increase was driven by a strong performance by its Chevrolet passenger cars, particularly the new Sonic subcompact model and the even-smaller Spark minicar that G.M. builds in Korea.

"G.M. also reported one of its best sales months ever for the Chevrolet Volt plug-in hybrid. The company said it sold 2,800 Volts during August, compared with 300 a year earlier.

“Although trucks had a solid month, the small-car performance is what’s most impressive about G.M.’s numbers today,” said Jessica Caldwell, an analyst with the automotive research site Edmunds.com.

"The Ford Motor Company said its August sales increased 12.6 percent, to 196,000 vehicles. It reported its biggest gains in the Focus compact car and the new Escape, its smallest sport utility vehicle.

"Focus sales were up 35 percent compared with the same period a year earlier, and Escape sales rose 36 percent.

“As fuel prices rose again during August, we saw growing numbers of people gravitate toward our fuel-efficient vehicles,” said Ken Czubay, Ford’s head of United States sales and marketing.

"The company also said pickup sales were steadily increasing in conjunction with a slow recovery in the housing market. Sales of the F-series pickup climbed 19 percent during August, with a large percentage of those buyers choosing trucks with high-mileage, six-cylinder engines instead of the less efficient eight-cylinder models.

"The overall strength of the American market prompted Ford to announce it will build 725,000 vehicles in North America during the fourth quarter, a 7 percent increase from the same period a year earlier.

"Chrysler, the smallest of the Detroit car companies, said its August sales increased by 14.1 percent, to 148,000 vehicles.

"The increase was attributed in part to sales of the all-new Dodge Dart compact sedan, which is derived from a vehicle platform developed by Fiat, Chrysler’s Italian parent company. Chrysler, which previously lacked a competitive model in the small-car segment, said it sold 3,000 Darts in August.

"Reid Bigland, Chrysler’s head of United States sales, called the domestic market “incredibly resilient” and estimated that the seasonally adjusted, industrywide annual sales rate was 14.6 million vehicles in August.

"Toyota said that it sold 188,000 vehicles during August, a 45.6 percent increase from the same month last year. Honda reported a 59.5 percent gain, to 131,000 vehicles.

"The surge by the two large Japanese automakers seemed to hurt the performance of their Asian rivals. Nissan said its American sales grew just 7.6 percent in August, to 98,000, while the Korean carmaker Hyundai reported a 4.4 percent gain, to 61,000 vehicles.

"One of the fastest-growing auto companies in the United States, the German carmaker Volkswagen, said it sold 52,000 VW and Audi brand vehicles in August. That represents a 48.2 percent increase from the same period last year.

"Like other automakers, VW’s results were lifted by fuel-efficient cars like the Jetta and Passat.

"Analysts said the overall industry results exceeded expectations. The consistent level of demand throughout the year has helped the companies keep inventories stable and sales incentives relatively low.

“The more predictable the market is, the better it is for product planning and marketing,” Mr. Toprak said. “The fact is, predictability is what this industry has been lacking for the past four years.”

http://www.nytimes.com/2012/09/05/business/august-us-car-sales.html

 

home sales are going the same thing but still the righties on et are trying to make the claim that things are worse than they were 4 years ago.



Home prices are rising in the Fort Myers area.

The overall median sales price for single-family homes sold with the help of a Realtor in December increased to $116,950, up 32 percent from $88,000 a year ago, according to the Realtor Association of Greater Fort Myers and the Beach Inc.
http://www.naplesnews.com/news/2012/jan/18/single-family-home-prices-increase-in-fort-myers/

 

"DETROIT — In the past, nothing slowed down strong car sales faster than a spike in gasoline prices.
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Zero down, zero interest..what's the price of gas got to do with anything?

Imo, the price of repairs is probably driving sales not fuel prices.

 

So homeprices in Fort Myers FL are suddenly the barometer for the national housing market??? Last year, you cherry picked a few areas in Orange County California.

We all know that you are a hopeless partisan hack, but this is getting ridiculous.