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Automobile industry

US Car Sales Rise in March as Economy Shows Signs of Recovery

Strategic Insights

— 1 min read

US car sales surged in March, led by growing demand for fuel-efficient vehicles, as the economy added 216,000 new jobs, bringing the unemployment rate to a two-year low of 8.8 percent. General Motors, Ford, Honda, and Nissan all reported significant increases in sales, with Toyota being the only major automaker to report a decline. The strong sales of small cars and healthy truck sales suggest businesses are buying as the economy continues to recover.

Key Takeaways:

  • US car sales rose 11 percent at General Motors, 16 percent at Ford, 23 percent at Honda, and 27 percent at Nissan in March, led by sales of smaller, more efficient cars and crossovers.
  • New vehicle sales were aided by a brighter jobs outlook and rising sales of fuel-efficient vehicles, as the economy added 216,000 new jobs, bringing the unemployment rate to 8.8 percent.
  • General Motors reported an 80 percent sales gain of the new Chevrolet Cruze, its first high-quality small car in years, over its predecessor, the Cobalt.
  • Ford's George Pipas noted that small car sales shot up in the first part of March and then stabilized in the last three weeks as gas prices leveled off at around $3.50 per gallon.
  • Ford faced supply constraints due to limited availability of small cars, such as the Fiesta subcompact, which dropped from a 2-month supply at the beginning of March to a 40-day supply at the end of the month.
  • The earthquake in Japan pinched supply of some small cars made there, like the Toyota Prius and Honda Fit.

Statistics:

  • 216,000 new jobs added in March, bringing the unemployment rate to 8.8 percent.
  • US car sales rose by 11%, 16%, 23%, and 27%, respectively, at General Motors, Ford, Honda, and Nissan in March.
  • 80% sales gain of the new Chevrolet Cruze over its predecessor, the Cobalt, at General Motors.
  • Gas prices leveled off at around $3.50 per gallon.
  • 2-month supply of the Fiesta subcompact reduced to a 40-day supply at Ford.
  • Limited selection and availability of small cars cited as a possible reason for stabilization of sales.

Sources:

  • Labor Department
  • General Motors
  • Ford Motor Co.
  • Associated Press
  • Toyota Motor Corp.

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