American automobile sales rise despite Superstorm Sandy
DETROIT — Americans bought new cars and trucks at a healthy pace in October even as Superstorm Sandy wiped out sales in the Northeast late in the month.
U.S. sales of new cars and trucks rose 7 percent from a year earlier to 1.1 million, and most major carmakers reported gains. October sales ran at an annual rate of 14.3 million, according to Autodata, which would be a strong improvement from the 12.8 million last year.
Demand this year has been fueled by low interest rates and aging cars that need replacement. Americans also are feeling better about the economy and jobs, key drivers of sales.
“This is a healthy pace that is supported by real consumer demand,” said Jesse Toprak, vice president of market intelligence at TrueCar. “It's based on consumers feeling better about their purchases.”
Company executives also expect demand in November and December to get a lift from people replacing vehicles damaged by Sandy.
General Motors firmed up its full-year U.S. sales forecast to about 14.5 million.
That is much better than sales of 10.4 million in 2009 but still short of the recent peak of 17 million in 2005.
In October, Volkswagen AG led all major companies with a 22 percent sales increase over the same period last year. Toyota sales were up 16 percent, and Honda sales rose 8.8 percent. In Detroit, Chrysler's sales climbed 10 percent, General Motors was up 5 and Ford Motor rose slightly.
Nissan Motor, however, was hit hard by the storm because the Northeast is its top-selling region.
Its sales fell 3.2 percent.
“It is absolutely a hurt on us,” said Al Castignetti, vice president of the Nissan division.
As of Wednesday, 65 Nissan dealers in New York, New Jersey and Connecticut were closed due to power outages, and they account for 40 percent of the region's sales, Castignetti said.
