agent Entrepreneur logo
MenuMENU
SearchSEARCH

Automakers Start Year with Strong Sales

February 1, 2012
3 min to read


Car sales zoomed ahead in January, with many automakers reporting solid sales at the start of a year expected to show a steady gain in vehicle purchases.


Chrysler, now privately held and majority owned by Italy’s Fiat, was the notable standout for the month. It posted a 44 percent rise in U.S. auto sales, led by gains for its Jeep brand, while its larger domestic rival General Motors lost ground in a month marked by modest growth, according to msnbc.com.

Ad Loading...


Chrysler’s sales blew past some analysts’ expectations of a 35 percent increase, demonstrating the remarkable comeback of the smallest U.S. automaker nearly three years after its taxpayer-funded bankruptcy restructuring. It also reported its first full-year profit since 1997.


GM, the largest U.S. automaker, reported a 6 percent drop in U.S. auto sales for the month, while Ford posted sales that were 7 percent higher, spurred by a 60 percent jump in sales of the Focus small car.


Japan’s Toyota said its January sales in the U.S. rose 7.5 percent as momentum from the fourth quarter of last year picked up speed.


U.S. auto sales, an early indication of consumer demand each month, are expected to show an overall rise of 6 percent in January. Older cars, which now average a record 11 years old, are helping to boost new car sales as people trade them in after delaying purchases during the economic downturn.


As drivers replace their aging cars, new car sales are expected to grow through at least the start of 2012. At the same time, used vehicle prices have jumped compared to new car prices, which could drive car buyers to purchase a new car over a used one. Ford economist Jenny Lin said low interest rates as well as stable gasoline prices are also supporting vehicle sales.

Ad Loading...


So far, the annualized sales rate for January, traditionally a tepid month for auto sales, is tracking at 13.8 million vehicles, JP Morgan analyst Himanshu Patel said in a research note. This surpasses the 13.5 million sales rate that analysts had expected and is slightly higher than the nearly 13.6 million sales rate reached in December.


GM was expected to show a decline in sales compared to last January, when the automaker offered consumer incentives to jump-start sales. It has since pulled back from this approach.


“The old days of going blindly after market share are over, and most manufacturers are now concentrating on what really matters, which is profitability,” said Jesse Toprak, TrueCar.com analyst.


GM sales totaled 167,962 vehicles in January. The carmaker predicted that light vehicle sales in 2012 would range from 13.5 million to 14 million.


Some analysts had expected GM to report a 9 percent drop.

Ad Loading...


“In 2012, we will strengthen our position with more new products, an even better dealership experience and reinforce the disciplined ‘go to market’ strategy that helped us grow profitably in the United States in 2011,” GM’s U.S. sales chief Don Johnson said in a statement.


Volkswagen and Nissan reported sales gains for January. VW sales rose 48 percent to 27,209 vehicles, buoyed by the introduction of its Passat sedan. It was the German automaker’s best sales month in decades. Nissan’s U.S. sales rose 10.4 percent to 79,313.


During a call with reporters, Jonathan Browning, chief executive of VW in America, said U.S. consumer confidence was growing, but not a swift rate.

More Industry

Foreign Cars Italia dealership store in front of sunset
Industryby Hannah MitchellJuly 2, 2026

Luxe N.C. Dealerships Change Hands

A collection of Italian and English brand franchises were handed off to the owner’s friend in the business and include the Carolinas’ only Ferrari retail stores.

Read More →
inside of car, person with hands on black steering wheel
Industryby Lauren LawrenceJuly 2, 2026

Exposure Drives Interest in Chinese Cars

At a recent demonstration, consumers had the chance to ride in a Chinese-branded vehicle, a firsthand experience that improved their perceptions and purchase intent.

Read More →
Woman's hands holding an wallet empty of cash
Industryby Hannah MitchellJuly 1, 2026

Automotive Consumers Sink Further in Debt

Most financing metrics hit records in the second quarter as more buyers locked themselves into long terms and high monthly payments.

Read More →
Ad Loading...
Rob Mancuso sitting in a chair on stage
Industryby Hannah MitchellJuly 1, 2026

Agent Advocate

Rob Mancuso, who comes from a long line of auto dealers, values general agents’ place in the industry and makes a case for them taking an even bigger seat at the table.

Read More →
Photo of a touchscreen on a car's dashboard
Industryby Hannah MitchellJune 25, 2026

Driving Under Distraction

Though consumers gave higher marks to new vehicles in JD Power’s most recent initial-quality poll, high-tech interference worsened, pointing to craving for simplicity.

Read More →
split background green and blue. 2019 to 2025 with car going from starting location to end point. $37,310 and $48,402. Agent Entrepreneur logo
Industryby Lauren LawrenceJune 25, 2026

Affordable New Cars a Thing of the Past

More than one out of five new vehicles sell for more than $60,000, according to Edmunds. That's up 7% compared to prepandemic 2019.

Read More →
Ad Loading...
Photo of multiple new SUVs on a car dealership lot
Industryby Hannah MitchellJune 22, 2026

State Follows Federal Warning on Auto Ads

The Massachusetts attorney general cautioned the state’s automotive dealers to be upfront with the consuming public about their vehicle prices or risk punishment.

Read More →
Gas pumps.
Industryby Lauren LawrenceJune 15, 2026

Consumer Outlook on the Rise

Younger generations are feeling more positive about their financial futures and current affordability pressures than older generations, according to recent TransUnion data.

Read More →
Group photo of men outside storefront.
Industryby Hannah MitchellMay 28, 2026

Pennsylvania Dealership Under New Retailers

The sale of the Chrysler Dodge Jeep Ram store puts a family auto group on a leaner path as first-time dealers take the helm.

Read More →
Ad Loading...
Hallway with lockered wiring and computer
Industryby Lauren LawrenceMay 28, 2026

Battery Storage Takes Priority Over EVs

U.S. automakers are prioritizing battery energy stationary storage over electric-vehicle production as the consumer demand for EVs lags the rest of the world.

Read More →
Ad Loading...