For many individuals
directly associated with the auto industry, the past months have been
nothing but a roller coaster full of twists, turns, highs, and lows.
The majority of the automotive giants have reported that sales in
October were looking up when compared with an overall slow September.
When looking at the overall industry sales figures, the industry was
expected to break just about even when compared to one year ago.
Since September, the industry has seen about a 12 % increase.
Individually speaking, the
major companies have each had varying experiences regarding increases
or decreases in sales. General Motors, Ford Motor, and Nissan were
all pleased to report that their average sales had increased in
comparison to a year ago. Other companies such as Toyota and Honda
Motors reported that their sales were essentially unchanged with
regards to last years figures, while Chrysler has reported a 30 %
decrease in sales from October 2008. Senior Analyst for auto industry
tracker Edmunds.com, Jessica Caldwell, has stated that this is, for
the most part, good news for the battered industry, adding that,
“Anything that shows any kind of improvement in this economy is a
positive.”
During the mid-summer
season – late July and the first few weeks of August – auto sales
across the industry shot-up thanks to the government's
Cash-for-Clunkers program. The federally funded program aimed to help
stimulate a suffering industry as well as begin to replace gas
guzzling vehicles on the road with smaller, more fuel efficient
vehicles. One way they accomplished this was by offering a $4,500
rebate towards a newer more fuel efficient vehicle, when an older gas
guzzler is traded in. This inevitably encouraged consumers to get out
there and buy newer vehicles while the price was right. The only down
side was simply that the program left a good amount of auto dealers
with a limited stock of vehicles in September.
In response to the
decreased inventories, companies such as Ford have begun to increase
their production throughout the month of October. Despite the
increase in sales, Ford's inventories rose by 22% throughout October.
This increase of production also assisted in boosting other parts of
the industry such as production departments, as well as other
branches such as auto transport. One Ford spokesman went on record as
stating that “Inventory is not an excuse for sales being up or down
for any particular products.”
General Motors reported
that although it fell slightly short of Edmunds.com's estimation of a
6% sales increase, they have achieved the first “year-over-year”
gain in sales in 21 months, reaching 5%. Even with a 40 % decrease
in sales regarding brands that are either on the chopping block or
looking to be sold – Hummer, Pontiac, Saab, and Saturn- top U.S.
automaker GM has increased sales by 13% from September.
Perhaps the most impressive
performance by any Motor Group can be found within the Hyundai Motor
Group. Owning Hyundai and Kia brands, this company has consistently
reported growth that far exceeded the average of other companies.
Edmunds.com had forecast a 38% increase in sales. Actual increase
over the past year has been recorded as being a whopping 47 %
increase from a year ago, taking the cake for sales success.