US auto sales post second-best month of 2009

03 November 2009 23:08  [Source: ICIS news]

HOUSTON (ICIS news)--Gains at General Motors (GM), Ford and Nissan made October the US auto industry’s best non-"clunkers" month of 2009, but the industry’s monthly sales figures were still down year on year, data revealed on Tuesday.

Total US vehicle sales from the six major manufacturers were 673,671 units in October, down 3% from the same month in 2008.

August auto sales provided the only other single-digit monthly contraction, but the 2% drop that month was driven by the US government's "cash for clunkers" rebate programme.

In October, Nissan boasted the highest gain in sales with a 6% bump from October 2008 while GM and Ford were close behind with 4% and 3% increases, respectively.

Before August, Ford had been the only one of the six large US manufacturers to show a monthly boost in sales following its positive numbers in July.

Dennis Virag, president of Automotive Consulting Group in Ann Arbor, Michigan, said the strong October relative to earlier months is a positive for the industry and the wider economy.

"It shows that we have likely reached the bottom of the sales decline and see a gradual upturn," he said.

Automotive sales are a key bellwether for demand in the chemical industry with 331 lb (150kg) of plastics is used in every automobile made in the US, according to the American Chemistry Council (ACC).

Virag did concede that October 2009 sales figures had been compared with what was already a dismal time for the auto industry last year, skewing some of the strength in today's data.

However, the recovering numbers do put holes in the argument that the "clunkers" rebates were simply stealing from sales in outer months.

"I think the attributes of the new vehicles is really driving the decision on the part of consumers to trade in their new vehicles," Virag explained. "New technology, new vehicles are driving consumers back into the showrooms."

As a result, GM forecast that that it will make 620,000 units in the fourth quarter a 17% hike in production from the third quarter when 531,000 vehicles rolled off of GM assembly lines.

Chrysler's woes continued with a 30% fall in sales levels compared with last year, but the Auburn Hills, Michigan-based company touted a 6% increase from September levels.

"The industry showed signs of improvement this month with increasing sales, which is a trend we expect to continue for the remainder of the year," Chrysler's CEO Fred Diaz said in a statement.

But Virag said that Chrysler's aging product line and delay on new fuel-efficiency technology would exacerbate its underperformance.

"We can expect to see Chrysler seeing sales declines for the foreseeable future," he said.

The table below reflects October sales.

	2009			2008
	Car	Truck	Total	Car	Truck	Total	% change
Chrysler	17,556	48,247	65,803	25,014	69,516	94,530	-30
Ford	45,225	87,258	132,483	40,854	88,267	129,121	3
GM	63,935	113,668	177,603	73,466	97,119	170,585	4
Honda	49,502	36,000	85,502	51,400	34,464	85,864	0
Nissan	39,743	20,372	60,115	39,052	17,893	56,945	6
Toyota	95,610	56,555	152,165	97,752	59,980	157,732	-4
Total	311,571	362,100	673,671	327,538	367,239	694,777	-3

To discuss issues facing the chemical industry go to ICIS connect

By: Ryan Hickman
+1 713 525 2653

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly