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Strong sales, new products boost dealers

DALLAS — Not even January’s deep chill could slow the surging auto industry.

In what is typically a frigid month for automakers, retail sales of new cars and trucks in the U.S. grew an impressive 25 percent — including a 33 percent jump for General Motors and a 58 percent increase by Chrysler.

“If we can have this kind of business in January, I can hardly wait for March,” said Ray Huffines, CEO of Plano, Texas-based Huffines Auto Dealerships, which includes Chevrolet, Dodge, Chrysler, Jeep, Hyundai, Kia and Subaru.

The increase last month follows 11 percent growth in December, which analysts say bodes well for sales the remainder of the year.

In previous recessions, automobile sales generally tracked housing activity, with the two rising and falling together. But now autos are leaving housing in the dust.

“Housing is down and showing no signs of coming back,” said George Hoffer, a business professor at the University of Richmond who follows the industry. “In reality, the auto industry in recent years has moved to its own drumbeat.”

With the growth in January, some automakers and analysts are pushing up their earlier estimates that new-vehicle sales will rise 8.5 percent this year.

Several sources now expect total U.S. sales to top 13 million. IHS Automotive, for example, boosted its forecast from 12.8 million to 13.1 million, and Ford and GM each predict 13.3 million in industry sales, up 500,000.

“Dealers, like most businesses, are looking for consistency in the economy,” said Lee Chapman, president of the Dallas-Fort Worth Metropolitan New Car Dealers Association. “Each month seems to pick up a little more steam. Six months ago, we could be up one month, down the next.”

Many buyers today are replacing old vehicles. The average car or truck in the U.S. is more than 8 years old and has about 100,000 miles on it, according to various studies.

In addition, automakers are offering an array of highly attractive new vehicles — such as the Ford Explorer, Chevrolet Cruze, Hyundai Elantra and Jeep Grand Cherokee — just as the economy is stirring again. Through the credit companies they own, most automakers can also finance the purchases.

“When you get an economic recovery with lots of new products, sales go bonkers,” Hoffer said.

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