October Auto Sales Turn Higher

Southfield (WWJ)  -- There are signs of hope in the October car sales picture. 

Ford says it's October sales were up 3 percent compared to a year ago and 21 percent higher than September sales.  It's the third time in the last four months Ford sales have increased.  

Ford's overall car sales rose 11 percent over last October, while crossovers climbed 23 percent, Ford said Tuesday.  Truck sales fell 10 percent.  New products like the Ford Taurus sedan and Lincoln MKT crossover sold well.  More than 80 percent of last month's sales came from new 2010 models.

Fuel-efficient models like the Ford Fusion sedan and Escape small sport utility vehicle also flew off showroom floors, which both notching sales jumps of around 25 percent.

Ford analyst George Pipas says these are good signs. 

"Consumer confidence is going to play a large roll in this and I think it will take some time before sales get up to high levels," Pipas told WWJ's Jeff Gilbert.

Ford says its total market share in October was more than 15 percent - higher than a year ago and higher than its share in the first nine months of 2009.  Ford said it marked the 12th time in 13 months that its U.S. market share rose as it continues to grab buyers from competitors.

Meantime, General Motors reported its first monthly gain in U.S. sales in almost two years. 

The month boasted strong performance for GM's four core brands -- Chevrolet, Buick, GMC, and Cadillac -- resulted in GM U.S. October sales of 177,603 vehicles, up 4 percent from last October, the company's first year-over-year gain since January 2008. 

Total sales increased 13 percent when compared with September. The four brands accounted for about 95 percent of GM's retail sales, an increase of 10 percentage points compared to the prior year.    

"We're very pleased with consumer acceptance to our newest cars, crossovers and trucks," said Susan Docherty, GM vice president, U.S. Sales.

"While we have more work to do, we are making progress and will continue our focus on delivering vehicles and a sales and service experience that brings consumers to Chevrolet, Buick, GMC and Cadillac - and keeps them coming back."   

Also Tuesday, Chrysler reported a mixed sales picture.  October sales were up six percent compared with September, but year-to-year sales were down 30 percent. 

"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," said Fred Diaz, President and Chief Executive Officer-Ram Brand and Lead Executive for the Sales Organization, Chrysler Group LLC.

Diaz said Chrysler expects "fair share" of increases in November and December, which are typically the best months for SUV sales.

Mercedes-Benz USA reported October sales of 18,193 vehicles, its highest month of the year and a 21 percent improvement over last October. 

Other automakers were expected to report sales Tuesday afternoon.