There are signs that the economy is improving. The automakers have had the best two months in almost fifteen years. General Motors’ Company and Fiat Chrysler Automobiles NV were among the top manufacturers that posted their results for October. Ford Motor Company and Honda Motor Company were the lowest on the totem pole.
Cars are in high demand right now which proves that the U.S. economy is on the track to recovery. The Federal Reserve plans to raise interest rates possibly as soon as next month. Sales are booming with job growth, available credit and affordable gas prices encouraging consumers to make the large purchase. The most popular of the vehicles are the sports utility vehicle.
Those who have the means want a new car and they are going out and buying them. “You have a consumer who feels good about the economy, who wants a new vehicle and who has the means to get it with relatively cheap credit. Everything is aligning,” stated Jeff Schuster, an analyst for LMC Automotive. General Motors’ annualized selling rate was 18.2 million making it the first time it has exceeded 18 million back-to-back since February 2000.
All the major automakers were projected to have increases in October. Volkswagen AG was not included in this projection due to their involvement in an alleged scandal dealing with diesel-emission. The smallest increase of these was Toyota with an 8.5 percent gain although their sales did rise to 13 percent with the sports utility vehicles. They set a record for October with their RAV4 and Highlander SUV sales.
“October was a huge month for the industry, smashing expectations and continuing its hot streak,” said Bill Fay, group vice president and general manager for the Toyota division. General Motors’ sales rose 16 percent while the sales of Cadillac, Chevrolet and GMC rose 13 percent. Fiat Chrysler rose 15 percent. The light-vehicles also increased to 1.46 million which exceeded the estimate of 1.41 million. Nissan’s sales jumped up to 13 percent when they were only expecting to increase by 9.4 percent. Honda slacked off a little with an increase of 8.6 percent when they were expected to have a 9.1 percent gain.
Jeep has been the shining star for Fiat Chrysler this year. The brand became popular in the 1980’s SUV boom when it debut Cherokee. There are two that have helped the sales of Jeep. The first is Wrangler which was up 15 percent last month. The second is the Grand Cherokee which is up 7 percent. The Grand Cherokee revamped itself in 2013. The new Cherokee and the Renegade started selling in the U.S. this year which brought up the Cherokee sales 12 percent.
Ford missed the mark a little with a gain of 14 percent. The F-Series pickup line only rose 3.3 percent but the Ford’s car sales jumped to 16 percent. The redesigned Mustang doubled deliveries in the month of October. Jaguar Land Rover also had a great month. They reported a 76 percent increase in sale which is their best ever.