U.S. new-car sales rose in September, led by double-digit percentage gains at General Motors Co. and Chrysler Group LLC, as consumers continued to drive off dealer lots in new sport-utility vehicles and pickup trucks.
GM, Nissan Motor Co. and Chrysler, a unit of Fiat Chrysler Automobiles NV, each reported 19% jumps over the same month last year, while Ford Motor Co. posted a 3% decline as it prepares to replace several models, including its most popular vehicle.
Overall, U.S. sales jumped 9.4% last month over a year earlier to 1.25 million vehicles, according to researcher Autodata Corp. The annualized selling pace was 16.43 million vehicles, the seventh month this year it has exceeded 16 million.
Toyota Motor Corp. posted a 1.7% gain over a year earlier and Honda Motor Co. said its sales rose 12%, helped by higher spending on sales incentives.
U.S. auto sales have remained robust this year, even as economic growth has been erratic and car manufacturers have dealt with a surge in auto-safety recalls. In August, industry sales hit their strongest selling pace in eight years as car makers tacked on extra discounts to make room for new models.
"We believe the industry is quite sound," said John Felice, Ford's U.S. sales chief. Ford expects U.S. new-vehicle sales to climb into 2016 with the potential to reach 17.5 million units, up from 15.6 million in 2013.
Helping drive the sales gains are deepening discounts from most major car makers and cheap loan rates. Pricing website TrueCar.com estimates spending on sales incentives rose 13% in September, while the average price paid for a car fell 1.4% to $31,014, after hitting record levels over the summer.
"When you look at the sedan-centric brands, they're definitely being challenged," said Larry Dominique, TrueCar's executive vice president. "Those brands that are strong into crossovers and SUVs are the ones really benefiting."
GM customers threw aside its recent string of auto-safety recalls to continue buying. Its sales rose 19% to 223,437 vehicles, with double-digit percentage gains in three out of its four brands.
GM truck sales made big strides in September, up 54% for the Chevrolet Silverado and 25% for the GMC Sierra. Sales for GM's mass-market Chevrolet brand also climbed 20%, helped by strong SUV and crossover demand. Buick sales rose 12%, while sales of the Cadillac luxury brand were unchanged from a year earlier.
The Detroit-based auto maker held the line on incentives, which according to TrueCar rose only 2.7% last month over a year earlier and were off 10% compared with August.
GM Chief Executive Mary Barra met with investors Wednesday to roll out a new financial strategy that aims to increase North American operating margins to 10% by 2016.
Ford said it sold 180,175 vehicles in September, a 3% decline. The company attributed to the drop to lower fleet sales and a dialing back of incentives on its current-generation F-series pickup trucks.
Sales of Ford's best-selling trucks slipped 1% last month ahead of a new, aluminum-bodied F-series truck coming later this year.
Chrysler continues to benefit from SUV and truck demand with Jeep sales up 47% and its Ram brand truck sales up 30%. Overall, it sold 169,890 vehicles last month, up 19% over last year, for its best September in nine years.
Toyota reported sales of 167,279 vehicles for the month, reflecting softer demand for compact and midsize cars, typically an area of strength for Toyota.
Honda's U.S. sales climbed to 118,223 vehicles, with its compact Fit and CR-V crossover setting September sales records. However, its incentive spending last month also jumped 40% over September 2013 to $2,076, according to TrueCar.
South Korea-based Hyundai Motor Co. said its sales rose 2% last month, while those for sister brand, Kia Motors, climbed 7%.
German auto maker Volkswagen AG said U.S. sales for its namesake VW brand declined 19%, while sales of the luxury Audi brand rose 14%.
Nissan's sales were aided by its Sentra compact and Rogue SUV. Total car sales for Nissan rose 13% year-over-year, while truck sales surged 27%, the company said. Sales of its Infiniti brand declined more than 13%.
"I know a lot of analysts have been beating the drum for the past couple months that this will soon end," said Fred Diaz, Nissan's U.S. sales chief. "I don't see it. I still see some pent up demand out there."
