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Chrysler’s Sales Increase in February

The auto-giant may have reason to smile

ChryslerWe’re all pretty much in limbo when it comes to the American auto industry. We want the companies to do well and succeed, because we’ll end up with less competition and higher prices, and a drop in GDP, if they fail.

But, with recent news from Ford and GM, much still looks bleak. On a good note, however, Chrysler’s sales went up 2.5% in February, while Ford and GM both reported sales decreases.

 
While the Auburn Hills-based Chrysler Group reported a sales gain of 2.5% last month, consumers bought fewer new cars and trucks from both Ford Motor Co. and General Motors Corp.

Sales declined 4% at Ford and 2.6% at GM, the companies reported Wednesday. Other automakers were slated to release their results later in the day.

Analysts are expecting industry-wide sales in February to be strong compared to the same month a year ago.

Three of GM’s eight brands – Buick, Hummer and Saab – reported gains, while the other five posted declines. Sales of the company’s big Hummer SUVs more than doubled in February compared to a year ago.

Six of Ford’s brands reported sales declines. Only Land Rover was up, by 27.8% compared to the same month a year ago.

Chrysler also had a mixed result, with Chrysler and Jeep sales up, and Dodge sales down a slight 1%.

Auto analyst Himanshu Patel of JP Morgan Securities Inc. said Ford outperformed expectations.

“We expect a neutral to modestly positive reaction to the company’s release,” he wrote in a research note to investors.

GM’s performance, however, was “modestly below expectations.”

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Posted on Thursday, March 2nd, 2006 at 6:09 am In Auto Warranty  


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