U.S. auto sales rise 11 percent from 2009 to 2010

DETROIT — 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 2010, car and truck sales came in at 11.6 million, up 11 percent from 2009, 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. But for now, executives are optimistic about this year. General Motors, Ford and Toyota all predict sales 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.

Toyota was the only company that sold fewer cars and trucks in 2010 than in 2009, stung by sudden-acceleration recalls in early 2010. Sales never fully recovered, despite luring buyers with generous incentives.

"We're coming off what was arguably the most challenging time in our 53-year history," says Don Esmond, senior vice president of Toyota's U.S. operations. He says he is optimistic that sales will rebound in 2011.

Over the past two years, many Americans, even those who had enough money to buy a car during the recession, had been wary to commit to monthly car payments, so they put off making such a large purchase. Many opted to repair or make do with what they had.

Those buyers are easing back into the market, replacing aging vehicles. The average vehicle on U.S. roads is now 10.2 years old — the oldest since 1997 and a full year older than in 2007, before the recession, according to the National Automobile Dealers Association.

"With 240 million vehicles out there on the road, a lot of them are going to be ripe for replacement," said Ellen Hughes-Cromwick, Ford's chief economist.

Auto sales peaked in 2005 at 17.4 million and bottomed out at 10.6 million in 2009. The peak was fueled, in part, by big incentives — like the employee-discounts-for-everyone programs that were popular in the summer of 2005. But those deals may be a thing of the past.

Gas prices should go up in 2011, which could change the kinds of cars buyers want. After moving away from large trucks and SUVs when gas prices spiked in the summer of 2008, Americans turned back to bigger wheels in 2010, and SUV and truck sales rose again.

Car sales made up 49.8 percent of sales in 2010, while truck sales made up 50.2 percent. And trucks and SUV sales keep growing: In December, they made up 54.3 percent of total sales. That was despite gas prices that topped $3 a gallon.

"Buying behavior doesn't change dramatically unless gas prices change dramatically," says Rebecca Lindland, director of automotive research with IHS Automotive. "If they gradually increase, people adjust."

Stronger 2010

U.S. auto sales grew in 2010 for most major automakers. Here's

a look at the percentage change in total sales from 2009 to 2010:

Chrysler: +17 percent

Ford: +15 percent

General Motors: +6.3 percent

Hyundai: +24 percent

Nissan: +18 percent

Honda: + 7.6 percent

Toyota: no change

Outmuscled

Ford's Mustang muscle car has lost the sports-car crown it had held since 1986. In 2010, the Chevy

Camaro outsold the Mustang 81,299 to 73,716. The two models have been battling for sports-car sales supremacy since the redesigned Camaro returned to the market in 2009 after a seven-year hiatus.

U.S. auto sales rise 11 percent from 2009 to 2010 01/04/11 [Last modified: Monday, November 7, 2011 1:53pm]

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