U.S. auto sales rise in January, led by Chrysler, VW

By: DEE-ANN DURBIN, TOM KRISHER | The Associated Press
Published: February 02, 2012

U.S. auto sales are off to a strong start this year, continuing their brisk pace from late 2011.

Chrysler had its best January in four years. Toyota and Honda were back in the game, getting boosts from important new vehicles. Volkswagen, which wants to aggressively expand in the U.S., reported big increases.

The only loser among the major automakers was General Motors Co., whose sales fell 6 percent from a strong January last year.

Sales of cars and trucks rose 11 percent to 913,287 in January, kicking off what is expected to be the strongest year for the industry since the recession. Jesse Toprak, vice president of industry trends for TrueCar.com, said demand is growing as the economy improves.

"For the first time in several years, we are starting the year off with a warm and fuzzy feeling," he said.

January's sales pace was even faster than December's, a relief for the industry after 2011.

Sales started at a healthy pace but plummeted after the Japanese earthquake in March caused car shortages. The pace of sales didn't recover until the last four months of the year.

If sales stay at the same pace as this January, they would reach 14.2 million, up from 12.8 million in 2011, according to Autodata Corp.

While this year's projection is below the 2000 peak of 17.3 million, it's better than the 10.4 million trough in 2009.

One reason car sales are improving is that buyers need to replace aging vehicles.

The average age of an American vehicle is a record 10.8 years, nearly two years older than a decade ago. Low interest rates and greater loan availability also spurred demand.

Auto sales

Here's how the major automakers performed in January compared with the same month a year ago:

Chrysler: Up 44 percent, led by surge in demand for Chrysler's revamped 200 and 300 sedans.

Ford: rose 7 percent. Demand for the Ford Focus small car rose 60 percent, while sales of the Escape small SUV rose 24 percent.

General Motors: down 6 percent (GM car sales rose 13 percent thanks to the new Chevrolet Sonic subcompact. But demand for its trucks and crossovers fell.