Car, Truck Sales Rise in November

New car and truck sales revved higher in November from a weak October, boosted by the strengthening economy and the annual year-end increase in cash rebates and other incentives.

General Motors Corp., Nissan Motor Co., Volkswagen and several other automakers posted double-digit gains in U.S. sales from weak levels in November last year, and auto executives Tuesday cited growing consumer confidence for fueling the strong results.

“Everything we read indicates that things are firming up for next year, and that’s a good sign for everybody,” said Jed Connelly, senior vice president of sales and marketing for Nissan North America.

GM, which reported weak results in November last year when it trimmed its incentives, said its U.S. sales this November jumped 21.1% to 356,374 vehicles, at the high end of expectations. The results excluded GM’s Saab brand and some heavy trucks.

Nissan sales rose 15.6%, while the Volkswagen brand reported a 32.7% rise.

Industry sales jumped 8.7% to a seasonally adjusted annual rate of 16.83 million vehicles, at the high end of analysts’ estimates and easily topping October’s 15.6 million and last November’s 16-million-unit rate.

Ford Motor Co. and the Chrysler arm of DaimlerChrysler reported more-modest gains, but executives there also were optimistic going into next year after more signs of economic strength.

“I don’t think anyone expected the economy to rebound as quickly as it has over the last few months,” said Jarlath Costello, an economist with Ford.

Ford sales rose 0.5% to 237,099 vehicles, excluding its overseas brands, Jaguar, Volvo and Land Rover.

Strong truck sales, including the new F-150 pickup, offset a drop in car sales.

A 15% jump in sales of its pickup truck, the Dodge Ram, helped Chrysler post a 2.9% rise in its November sales.

Ford executives said December vehicle sales for the industry could beat November results.

A strong finish to the year could make 2003 U.S. vehicle sales nearly as good as 2002’s 16.8 million, the fourth best on record.

GM, Ford and Chrysler made only modest changes to their incentives in November. All launched “lease pull-ahead” incentives, offering to waive remaining lease payments on vehicles if customers buy or lease a new car or truck.

“Incentives are a bit higher, but I don’t think that’s the whole story,” analyst David Healy of Burnham Securities said. “I think there is a little bit of economic recovery, better labor market conditions and improved consumer confidence in the November numbers.”