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US car sales seeing the light

2012-02-02 09:18

BUYING AGAIN: Based on increased sales in January, 2012, overall sales in the US for 2012 are on track to reach the 14.2-million mark.


DETROIT, Michigan - 2012 is already looking like a winner for automakers - just one month into the year.

US sales of new cars and trucks rose 11% to 913 287 in January, 2012. New models, low interest rates and better loan availability helped buyers overcome lingering worries about the economy and pushed the sales pace to its highest level since the Cash for Clunkers recycling programme in August 2009.

Chrysler had its best January in four years. Toyota and Honda were back in the game, getting boosts from important new vehicles. Volkswagen, which wants to aggressively expand in the US, reported big increases. The only loser among the major automakers was General Motors, whose sales fell 6% from a strong January in 2011.


Jesse Toprak, vice president of industry trends for TrueCar.com, said: "For the first time in several years, we are starting the year off with a warm and fuzzy feeling."

January's sales pace was even faster than December's, a relief for the industry after a bumpy 2011. Sales started at a healthy pace last year but plummeted after the Japanese earthquake in March caused car shortages and didn't recover until the final four months of 2011.

If sales stay at the same pace as this January, they would reach 14.2 million, up from 12.8 million in 2011, according to Autodata Corp. While that's below the 2000 peak of 17.3 million, it's better than the 10.4 million trough in 2009.

One reason car sales are improving is that buyers need to replace aging vehicles. The average age of a vehicle in the U.S. is a record 10.8 years, nearly two years older than a decade ago.

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