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After months of roller coaster-like sales, the auto industry offered signs of recovery from its yearlong slump on Tuesday, as most automakers and some dealers reported higher levels of U.S. sales in October.
GM, the largest U.S. automaker, reported its first monthly sales gain in almost two years, while Hyundai and Subaru were huge winners thanks to their popular models and fuel-efficient sedans. Other top automaker -- Toyota, Ford, Nissan -- also posted higher sales.
In Utah, signs were positive, as well. "We made money at all of our dealerships last month," said Stephen Wade of the St. George-based Stephen Wade Automotive Group that operates a half-dozen dealerships in southern Utah.
Wade, who is vice chairman-elect of the National Automobile Dealers Association, said the mood among consumers is encouraging. "I get the sense that a lot of them are starting to think that maybe we're to the point where we are coming out of the recession."
That was in contrast to a year ago, when consumers were frightened away from showrooms by the early effects of the financial meltdown, plunging stock markets and the credit freeze.
Chrysler, the maker of the Chrysler, Dodge, Jeep and Ram truck brands, sold 65,803 vehicles last month, up 6 percent from September but down 30 percent from last year. The automaker, which is announcing a new product strategy today, is aiming to show steady improvement month-to-month.
Although Chrysler
"I'd say our sales were pretty close to even, compared with last year," said Jim Hinckley of Hinckley Dodge in Salt Lake City. "Although many people still are cautious about making major purchases, their mood does seem to have brightened a little bit. There is a little more interest [among consumers] and a little more optimism."
Automakers had said this October would be a test of the strength of the auto market after the volatile effects of the government's Cash for Clunkers program. The industry staggered through a tough September following the summer's clunker-fueled sales surge.
The industry still has to see its way through a number of economic challenges, said Bob Carter, a Toyota vice president. Americans remain anxious about high unemployment, while consumer confidence remains dampened.
Demand for new cars and crossovers fueled better October sales for General Motors Co. and Ford Motor Co. GM's sales rose 4.7 percent, while Ford notched a 3-percent gain. Toyota Motor Corp. said its sales edged up less than a percent.
Hyundai, based in South Korea, said its sales jumped 49 percent, boosted by its fuel-efficient Elantra sedan. Japanese automaker Subaru also topped the winner's list with a 41-percent surge, helped by strong sales in its Outback and Forester models.
