Just about everything broke right for the U.S. auto industry in September, as strong consumer demand, easy credit and generous incentives combined for double-digit sales gains at most major automakers.
Right now, the scandal over emissions cheating at Volkswagen is hurting only the German automaker. VW’s sales were up less than 1 percent over last September.
Ford’s U.S. sales grew 23 percent in September, Nissan surged 18 percent and Fiat Chrysler’s U.S. sales jumped nearly 14 percent. Sales at General Motors rose 12 percent, while Toyota posted a 16 percent gain. Honda’s sales were up 13 percent.
Analysts expected big sales increases because Labor Day was included in September this year versus August a year ago. Labor Day weekend is typically one of the biggest sales periods of the year, as dealers offer discounts to clear cars off their lots before the new model-year vehicles arrive.
Car buying site Kelley Blue Book forecast a 12 percent increase in sales to 1.39 million cars and trucks.
The U.S. market has remained a bright spot for automakers as the Chinese economy slows. China is still the No. 1 market globally, but sales there were up just 2.6 percent in the first eight months of the year. U.S. sales grew nearly 4 percent in that time period.
“The economy still has room to grow and so do auto sales, particularly now that the (millennials) are entering the workforce and starting households,” said GM’s chief economist, Mustafa Mohatarem, in a statement from the company.
But Karl Brauer, a senior analyst with KBB, said sales could drop significantly if automakers and the UAW can’t come to an agreement on new contracts for GM, Ford and Fiat Chrysler. It wouldn’t take long for a strike at their U.S. plants to crimp vehicle availability.
