Sales were expected to total around 800,000 for the month. That's still below pre-recession levels of 1 million or more, but better than last January's sales of 698,000.
Nearly all big car companies reported double-digit gains for the month, a sign that the slow recovery in U.S. auto sales that began last year remains on track. While the recovery could falter if turmoil in the Middle East pushed up gas prices or unemployment stays high, the industry was happy with what it saw last month.
"January signals a good start to the year for us, for the industry, and we think it's a good sign for the overall U.S. economy," said Don Johnson, vice president of U.S. sales for General Motors Co.
Car buyers were shopping for just about everything. Sales of recently redesigned SUVS such as the Jeep Grand Cherokee and Ford Explorer were strong. People also snapped up small cars such as the Nissan Versa and Honda Fit.
Pickups remained strong, continuing a streak that began last year thanks to growing demand from construction crews and other small businesses. Ford F-Series sales rose 30 percent. Crossovers, which combine the roominess of SUVs with car-like handling, also remained strong. Sales of the Chevrolet Equinox, for example, rose 35 percent.
Last January, rental-car companies and other businesses fueled the recovery in auto sales as they began to restock their fleets after the recession. But last month, individual buyers propelled sales.
GM said its sales to individuals rose 36 percent, while its fleet sales fell 7 percent. Ford Motor Co. saw a similar trend.
Deals are helping move the metal. Car companies threw in more discounts in January, with incentives hitting an average of $2,576 per vehicle, said Jesse Toprak, vice president of industry analysis at car pricing site TrueCar.com. Toyota Motor Corp. and Honda Motor Co. increased their incentives by 40 percent.
For more info- http://www.msnbc.msn.com/id/41369773/ns/business-autos/
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