US Car Sales Surge in March Amid Brighter Job Outlook

Strategic Insights -

The US car market saw a significant boost in March as new vehicle sales rose 11 per cent at General Motors, 16 per cent at Ford, 23 per cent at Honda, and 27 per cent at Nissan. These gains were largely driven by the popularity of smaller, more fuel-efficient cars and crossovers. The economy added 216,000 new jobs in March, bringing the unemployment rate to a two-year low of 8.8 per cent. The brighter job outlook and rising demand for fuel-efficient vehicles contributed to the surge in car sales.

Key Takeaways:

  • General Motors reported an 11 per cent increase in new vehicle sales in March, with the Chevrolet Cruze being a major contributor, posting an 80 per cent sales gain over its predecessor, the Cobalt.
  • Ford models such as the Fiesta and Explorer crossover saw significant sales increases, with the Fiesta jumping 56 per cent from February.
  • Honda sales jumped 23 per cent to 133,650 vehicles, with the subcompact Fit leading the way with a 49 per cent increase in sales.
  • Nissan Motor Co. sales rose 27 per cent for the month, with sales of the Santra compact more than doubling.
  • Chrysler Group LLC reported a 31 per cent sales increase, led by midsize sedans such as the Chrysler 200 and the Dodge Avenger.
  • Toyota Motor Corp. was the only major automaker to report a decline in sales, with a nearly 6 per cent drop, attributed to reduced rebates and limited availability of some models due to supply disruptions caused by Japan's earthquake.

Statistics:

  • US new vehicle sales rose 11 per cent at General Motors, 16 per cent at Ford, 23 per cent at Honda, and 27 per cent at Nissan in March.
  • The economy added 216,000 new jobs in March, bringing the unemployment rate to a two-year low of 8.8 per cent.
  • The US average for a gallon of gas hit $3.61 this week, the highest price ever for this time of year.
  • Gas prices have jumped 25.1 cents per gallon in the past month.

Sources:

  • General Motors
  • Ford Motor Co.
  • Honda Motor Co.
  • Nissan Motor Co.
  • Chrysler Group LLC
  • Toyota Motor Corp.
  • TrueCar.com
  • J D Power and Associates
  • Labor Department
  • Edmunds Director of Industry Analysis Jessica Caldwell