43
Cruze fuels sales surge
Photo
James and Ruth Cain of Salem check out a 2011 Chevrolet Cruze at Stadium GM Superstore in Salem on Wednesday. James Cain, a GM retiree, said he was impressed with the car.
GM, Ford, Chrysler end 2010 with gains
Staff and wire report
Brisk sales of the Mahoning Valley-built Chevrolet Cruze contributed to the General Motors’ surge in sales for 2010, say Lordstown GM corporate and union leaders.
Cruze sales in December were just over 11,000, a “good increase” over November sales, said Tom Mock, Lordstown GM spokesman.
“We are on track in terms of incremental increases every month. Increased sales is in response to a quality vehicle, which has gotten many favorable reviews including being one of the safest, best riding vehicles on the road. It’s a car we’re really proud to build,” Mock said.
Industrywide, Ford Motor Co. sales rose 15 percent in 2010 and it grabbed market share from rivals for the second year in a row. General Motors Co.’s sales rose 6.3 percent, while Chrysler climbed 17 percent, an impressive rebound from 2009 when the two companies restructured in bankruptcy court.
Typically this is the time of year when car sales tank, but this year was different, said Jim Graham, president of United Autoworkers Local 1112, which represents hourly employees in the Lordstown assembly plant.
In addition to the Cruze, GM’s 2010 increase was fueled by its SUV-like crossover the Chevrolet Equinox, which seats five people. Equinox sales rose 80 percent in 2010.
For the year, car and truck sales in the United States came in at 11.6 million, up 11 percent from 2009, automakers reported Tuesday. For December alone, sales were 1.14 million, also up 11 percent from a year earlier.
Toyota was the only company that sold fewer cars and trucks than in 2009.
Cruze sales are obviously positively impacting GM’s overall sales and the company coming out of bankruptcy, Graham said.
“Things are looking great for GM. We’ve got solid leadership at the top in the union and corporation,” he said. “We set goals and we’re achieving them. Every thing starts at the top and filters down. It is contagious.”
David Green, president of UAW Local 1714, which represents employees in the Lordstown GM fabricating plant, added: “The Cruze is a testament to the new GM and the quality products it can produce. It is good news for us and the Mahoning Valley and GM as a whole.”
Also, Green thinks sales of the economical Cruze will continue to rise because the price of gasoline is going up.
But for now, executives are optimistic about this year. General Motors, Ford and Toyota all predict sale will come in at 12.5 million to 13 million for 2011. It will take years, analysts expect, to get back to the peak sales of the middle of last decade — more like 17 million.
Don Johnson, vice president of U.S. sales for GM, said GM expects sales eventually will creep back up to 15 or 16 million annually but not much higher. Car companies have downsized and they’re producing fewer vehicles, so they don’t have to resort to costly incentives in order to clear out inventory.
Also, buyers have been spooked by falling home prices and high unemployment — fears that could have a lasting effect on buying patterns.