Cruze continues momentum

By Kalea Hall | February 4, 2015 at 12:08a.m.

LORDSTOWN

After ending its best sales year ever in 2014, the Lords-town-built Chevrolet Cruze continued its momentum in 2015 with record January sales.

General Motors reported positive sales for the typically mundane winter month on many of its core vehicles, including the Cruze.

Cruze sales increased 11.1 percent with 18,693 sold last month compared with 16,828 in January 2014.

This is after the Cruze — a compact car that has been on the market since 2010 and got its first refresh last year — posted a 10 percent increase in sales year over year in 2014. Sales went from 248,224 in 2013 to 273,060 in 2014.

“That is right where we like it to be,” said Glenn Johnson, head of United Auto Workers Local 1112 at the Lordstown complex. “January is a tough time to sell cars. We are very pleased overall, and it is a good start to the year.”

GM’s sales increased 18 percent from a year ago. The manufacturer reported Tuesday it delivered 202,786 in the U.S. last month for the best January GM has had in seven years.

Last January, sales saw the impact of the polar vortex. Milder weather and a variety of other factors helped keep up 2014’s momentum in January.

“A number of factors, including low gas prices, stable home values and lots of available credit, are contributing to the sales pace,” said Karl Brauer, senior analyst for Kelley Blue Book. “If those factors remain in place, new vehicle sales will continue to rise, though a big shift in one or more could quickly slow things down.”

Sport utility vehicles and trucks are still impeding on the compact-car segment. GM’s Chevrolet Silverado sales increased by 24.8 percent, and the Suburban’s increased by 142.2 percent. Smaller vehicles in GM’s portfolio such as the Spark, which had a sales increase of 71.5 percent from last January, also performed well.

“We can find strength throughout GM’s portfolio,” said Alec Gutierrez, senior analyst for KBB.

GM’s crossovers and SUVs were up 36 percent year over year. Other highlights for the automaker’s January sales include: GMC had its best retail sales since 2004; Buick Encore deliveries were up 46 percent; and Cadillac XTS deliveries were up 14 percent.

Eric Lyman, vice president for industry insights at TrueCar, said the Cruze’s increase in sales is “definitely the impact of the refresh model.” As a compact car, the Cruze has tough competition with the utility and truck segments.

“That is a good achievement,” he said. “[Compact cars] are swimming against the tide.”

Fiat Chrysler Automobiles reported U.S. sales of 145,007 units, a 14 percent increase compared with sales in January 2014, and the group’s best January sales since 2007. Chrysler, Jeep, Dodge, Ram Truck and FIAT brands all posted year-over-year sales gains.

Ford U.S. January sales were up 15 percent compared with last January with sales of 178,351 vehicles. The automaker reported its best retail sales results since 2004 with 128,666 vehicles sold.

American Honda Motor Co. reported a new January record on Honda and Acura vehicle sales of 102,184 units, an increase of 11.5 percent versus January 2014.

Toyota Motor Sales U.S.A. Inc. reported January 2015 sales of 169,194, an increase of 15.6 percent from January 2014 on a volume basis. With one additional selling day in January 2015, sales were up 11.2 percent on a daily selling rate basis.

Lyman anticipates the sales momentum to continue in February.

“Overall, we are expecting a half-million more units to be sold in 2015 than 2014, and we expect that to be pretty well distributed [through the year],” he said.