September's Auto Sales Jumped

Major automakers reported U.S. auto sales rose 28.5 percent in September, lifting hopes for an uptick in buying in the final three months of the year, reported The Wall Street Journal.

Automakers sold 958,966 cars and light trucks last month compared to 746,104 a year ago, according to researcher Autodata Corp. Year-ago sales were damped by the end of the U.S. government's "cash for clunkers" incentive program.

Ford Motor Co. and Chrysler Group LLC reported September sales increases of 46 percent and 61 percent, respectively, compared with a unusually weak month a year ago, following the end of the Cash for Clunkers incentives. General Motors Co. posted a new-vehicle sales gain of 11 percent; while Toyota Motor Corp. rose 17 percent and Honda Motor Co. sales climbed 26 percent.

"We think the modest increase in spending will continue," GM's U.S. sales chief, Don Johnson, said Friday. "We don't think it's going to bust loose like it does sometimes after you get an economic downturn, but again we see steady growth."

Johnson said consumers remain cautious but the introduction of new models combined with a slowly recovering economy will keep buyers in showrooms.

New vehicle introductions by the Detroit auto makers mean a tighter control over incentives. GM spent about $3,300 in incentives a vehicle on average, down about $990 from September 2009.

In Massachusetts, Maine and New Hampshire, Prime Motor Group reported increases in sales of new and used vehicles at the 15 stores it operates, with strong gains in sales of luxury makes such as Audi and Mercedes. President David Rosenberg said car sales in the region are holding up because unemployment there is relatively low. Still, he said, "this is not a booming economy."

Jeremy Anwyl, CEO of Edmunds.com, an auto-shopping website, doubting that new-vehicle sales can maintain the current pace, estimates sales will fall to 11.3 million vehicles for the year.