Car Sales for GM and Ford Motors Increase in October despite Government Shutdown

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Car Sales for GM and Ford Motors Increase in October despite Government Shutdown
Car Sales for GM and Ford Motors Increase in October despite Government Shutdown

Car Sales for GM and Ford Motors Increase in October despite Government Shutdown

Ford Motor Co. and General Motors Co. both saw attractive growth in car sales for October despite the fact that the country was reeling under government shutdown during this month. The 16-day stalemate does not seem to have impact on GM and Ford Motor Co. sales gains for October as these two companies remained on pace for the best year since 2007.

Thus, gaining strength from the recent sales, General Motors, Ford, Nissan and Chrysler, the big four are expecting better sales the next year. These companies recorded double-digit sales gains despite the expectations that there might be a slowdown amidst government shutdown and tapering of stimulus package by the Fed.

Whereas General Motors and Ford saw heavy increase in sales, Toyota, Honda and Hyundai saw smaller increases comparatively. Interestingly enough, the only company losing the race seems to be Volkswagen whose sales fell during the relevant period.

Market observers believe that thanks to stable fuel prices, low interest rates and the increased availability of credit is helping people buy new cars.

General Motors Gains Maximum Sales

Reportedly, General Motors has achieved the most growth in the last month and its deliveries for its four brands increased to a great extent. The major deliveries were for Buick’s which gained more than 31 percent sales. On the other hand, sales of the Silverado and Sierra large pickups increased 10 percent and 13 percent, respectively.

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Amidst the robust sales of cars, General Motors posted third-quarter profit which is far better than what was expected from it. The company has beaten estimates on demand for the redesigned Silverado truck, Impala sedan and Cadillac cars. The company believes that increased car sales are due to lower oil prices.

Fusion Sedan from Ford Gains

Another major gainer in the latest craze for new cars is Ford’s Fusion sedan whose sales climbed 71 percent to 21,740. Ford which operates from Dearborn, Michigan, is a leading name in the mid-size car market. The emerging leader is giving tough challenge to Toyota which has traditionally been the champion of the mid-size car market.

Volkswagen AG reports Declining Sales

The only exception is Volkswagen AG whose sales declined by 11 percent. The Wolfsburg, Germany-based company’s VW and Audi brands sales declined and trailed the 3.3 percent gain that was the average of three estimates.

To contact the reporter of this story: Jonathan Millet at john@forexminute.com