Sales of Cobalts fell last month

STAFF/WIRE REPORT

Chevrolet Cobalt sales fell last month even when compared with a very slow November 2008.

General Motors said Tuesday that it sold 5,112 of the Lordstown-built cars in the U.S. last month, down 19 percent from the 6,312 that were sold in November 2008.

Last month’s total was just 57 sales ahead of October’s amount, which was the worst month for Cobalt sales since the car was launched at the end of 2004.

Mike Hudock, general manager of Stadium GM Superstore in Salem, said Cobalt sales have been held down partly because of a lack of inventory and lower incentives on 2010 models.

He said he has not had a full complement of Cobalts since the federal Cash for Clunkers program this past summer pushed up the model’s sales numbers to their highest levels of the year. GM sold 17,393 Cobalts in August.

“I’ve been running with a dozen or so on the ground, and I normally have 40 to 50 of them,” Hudock said.

The dealership received 23 Cobalts Monday, so Hudock is optimistic about sales this month.

Overall, GM said its total vehicle sales fell 2.2 percent in November, as improvements in its major brands were offset by declines across other noncore models.

Buick sales rose 24.8 percent, while sales of the Cadillac brand improved by 19.9 percent. Chevrolet and GMC brands posted gains as well.

Industry-wide, sales last month were mostly stable, but even higher incentives couldn’t push the needle much beyond last November’s dismal lows, when a credit freeze and the financial meltdown kept car buyers at home. Larger gains aren’t expected until Americans see a notable improvement in the job market.

One strength was sales of fuel-efficient cars and crossovers, which are as roomy as SUVs but are built on lower car frames, bolstering fuel economy.

Small monthly auto sales increases are likely as the economy continues its slow improvement, but larger auto sales gains will not happen until the jobless rate drops substantially, and people feel confident spending money on big-ticket items, said Martin Zimmerman, a former Ford Motor Co. chief economist who now teaches at the University of Michigan.

The U.S. jobless rate hit 10.2 percent in October, a 26-year high, and Zimmerman said people are holding onto their vehicles.

Carmakers continued to rely on discounts and other incentive spending to sell cars and trucks last month. Sales incentives rose 2 percent in November to $2,713 per vehicle, according to the auto Web site Edmunds.com.

Ford’s sales were essentially flat compared to last November, at 122,846, although sales of its crossovers rose 26 percent and sales rose 14 percent. Trucks and SUVs saw double-digit declines.

Chrysler said it sold only 63,560 vehicles last month, a decline of 25 percent, and it announced an array of sales incentives including zero percent financing and cash rebates designed to draw buyers into its showrooms.

Toyota said its U.S. sales rose 2.6 percent to 133,700, led by standbys like the Camry sedan and the RAV4 crossover.

Last months’ big winner, again, was South Korea’s Hyundai, which posted 46 percent on the back of its top-selling Sonata sedan.