Most automobile makers saw dramatic increases in profit during the month of August, while only Toyota and Honda saw decreases in sales, mostly because of the tsunami fallout. Financial analysts are attributing the rise in automobile sales to consumers finally feeling comfortable making larger purchases after delaying them as long as possible during the recession. Low interest rates are also a potential factor.
The seven top auto companies in the U.S. showed the following increases and decreases in automobile sales as compares to August of 2010:
Chrysler – 31% increase
Nissan – 19.2% increase
General Motors – 18% increase
Ford – 11.2% increase
Volkswagon – 10% increase
Toyota – 13% decrease
Honda – 24% decrease
The numbers are making investors “cautiously optimistic.” General Motors and Ford are struggling to meet demand, with workers at various plants working overtime and increasing production. Consumers are more comfortable with SUV, truck, and crossover purchases despite increases in summer gas costs.
Information via The Motley Fool.