EagleTribune.com, North Andover, MA

Business

September 9, 2012

August automobile sales rev up 20 percent

LOS ANGELES — Auto sales surged in August as consumers reacted to higher gas prices by snapping up fuel-efficient cars and small sport utility vehicles.

Total auto sales for the month were just under 1.3 million, 19.9 percent higher than a year earlier. That would put the annual pace at 14.5 million vehicles, the best of any month since the federal “cash for clunkers” economic stimulus program in August 2009 and a rate 2 million vehicles ahead of August 2011’s.

“The auto industry continued to outperform the general economy,” said Bill Fay, Toyota group vice president and general manager.

Easier credit and the need for people to replace aging vehicles they held onto during the Great Recession and subsequent anemic recovery contributed to the trend.

Fuel-efficient vehicles were especially good sellers as gas prices neared or crossed $4 a gallon in much of the nation.

Sales of Toyota’s Prius hybrid more than doubled to more than 21,000 vehicles. The gain was helped in part by greater availability of the vehicles as an inventory shortage created by last year’s earthquake in Japan abated. The brisk sales made the Prius the ninth bestselling passenger car in America. Sales of Toyota’s Camry hybrid also soared.

General Motors Co. said its Chevrolet passenger car sales jumped 25 percent, with gas-sippers such as the Spark, Sonic, Cruze and Volt plug-in hybrid all posting their best-ever monthly sales.

The Cruze, Sonic and Spark “were all unknown nameplates just a few years ago, but together they now almost equal the volume of Silverado,” Chevrolet’s bestselling truck and “the core” of the brand’s identity, said Jessica Caldwell, an analyst with auto information company Edmunds.com.

The consumer shift to smaller cars and SUVs is coming at the expense of large sport utility vehicles.

Sales of Chevrolet’s Suburban and Tahoe both fell by a third or more. Sales of Ford Motor Co.’s Expedition and Nissan North America’s Armada both dropped 14 percent.

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