10:35 AM
GM Dec sales up, industry on upswing into 2011
Addison Ray
By David Bailey
DETROIT | Tue Jan 4, 2011 12:20pm EST
DETROIT (Reuters) - General Motors Co posted a 7.5 percent rise in December U.S. auto sales and said it expects the industry to report sales at a 13 million-vehicle annualized rate for last month -- far higher than many forecasts and what would be the highest rate of 2010.
The December results capped a year of gradual recovery for the industry overall that is expected to continue in the new year.
GM said sales rose 16 percent in its four remaining U.S. brands in December from a year earlier, led by percentage gains in Buick and GMC. Retail sales to consumers jumped in the month and it reduced sales to rental car companies.
GM said results were led by a 42 percent jump in sales of its crossovers in December from a year earlier. The automaker also sold 29 percent more full-sized pickup trucks, most of those 2011 model year vehicles that command higher prices.
A year after its 2009 bankruptcy, and less than two months after its largest-ever IPO, GM remains the top-selling automaker in the United States. GM's U.S. sales rose 6.3 percent to 2.2 million in 2010 from the prior year.
Economists surveyed by Reuters expect automakers to report sales at a 12.3 million vehicle annualized rate in December, which would be the third consecutive month above the 12 million unit annualized rate followed by economists.
Ford Motor Co, Toyota Motor Corp, Honda Motor Co, Chrysler Group LLC and Nissan Motor Co are expected to report U.S. sales results later on Tuesday.
Toyota is expected to be the only top-selling automaker to report a U.S. sales decline for December.
Automakers have expected the U.S. market to show gradual growth while the economy shows some signs of stability with nagging concerns about slow job creation and persistent weakness in the housing market.
Overall, U.S. auto sales are expected to come in at about 11.5 million light vehicles in 2010. Industry tracking firm J.D. Power and Associates expects U.S. auto sales to rise to about 13 million vehicles in 2011.
GM said on Tuesday that it expects 2011 U.S. auto industry sales of 13 million to 13.5 million vehicles including medium and heavy trucks.
The auto industry snapped a four-year streak of declining annual sales in 2010 and growth in 2011 beyond expectations could force automakers to deal with capacity constraints, a luxury of a problem given recent years.
GM already has been adding capacity for strong-selling SUVs including the Chevy Equinox and GMC Terrain.
Growth is expected to stay strong in developing auto markets over the next several years including China and India.
Car sales in India were reported strong in December with Fitch expecting sales growth of up to 15 percent in 2011 driven mainly by a growing middle class and more financing opportunities.
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