US auto sales go up despite fuel price rise

CHICAGO - Associated French Press

Ford posted a 14 percent rise in February sales in the US to 179,119 vehicles and said it planned to increase second-quarter production by three pct from last year. AP photo

US auto sales continued to accelerate in February despite an unnerving jump in fuel prices as an improving overall economic outlook and aging vehicles drew consumers into showrooms, automakers said on Mar. 1.

Total industry sales rose 15.7 percent from a year earlier, while the sales pace hit its highest level since February 2008: a seasonally adjusted, annualized rate of 15.1 million units, according to Autodata.
The sales pace was up sharply from January’s rate of 14.18 million and 13.56 million in December. “For much of 2011, the auto industry was a bright spot for the overall economy and we think that will likely continue to be the case,” Don Johnson, head of US sales at General Motors, said in a conference call.
“Based on what we see in terms of pent up demand and the strength of the economy, we do not believe that short-term fluctuations in fuel prices will curtail industry growth this year.” The Detroit Three automakers are reaping the rewards of major investments in small cars and overall fuel economy improvements after years of ceding that territory to Asian rivals like Toyota and Honda. Those new models are being introduced amid a steady rise of overall industry sales as the economy climbs out of a deep economic downturn.

Chrysler once again led the pack as its sales jumped 40 percent in February from a year ago, racking up nearly two years of growth and the ninth straight month of gains above 20 percent.

Ford posted a 14 percent rise in February sales in the United States, to 179,119 vehicles, and said it planned to increase second-quarter production by three percent from last year to 730,000 vehicles.
 GM, the world’s top automaker by sales, said US sales rose a modest 1.1 percent to 209,306 vehicles compared with what it called a “very strong” performance in February 2011.

Toyota reported a 12 percent increase to 159,423 vehicles.