U.S. Auto Sales Highest Since Recession While Discounts Get Smaller: Cars

Automakers sold new cars and trucks in January at the fastest pace since the 2009 “cash for clunkers” program without resorting to profit-sapping discounts, signaling demand returned to pre-recession levels.

U.S. light-vehicle sales accelerated to a 14.2 million seasonally adjusted annualized rate in January, the highest since the August 2009 government trade-in program. Honda Motor Co. reported its first increase since its inventory plunged after Japan’s tsunami in March that interrupted the auto market’s recovery last year.

General Motors Co. (GM) remained the sales leader even as its market share dropped by 3.4 percentage points, followed by Ford Motor Co. (F) and Toyota Motor Corp. (7203) While GM was the only major automaker to report a sales decline, investors rewarded the company for pulling back on discounts to lift profit margins, boosting the stock 1.5 percent.

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- Posted: 2012-02-01 21:30:37

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