Automakers post gains, but Sandy may have hurt

Written By limadu on Kamis, 01 November 2012 | 23.53

Chrysler posted the best sales gain of the three U.S. automakers in October.

NEW YORK (CNNMoney) -- Automakers reported another month of improved car sales in October, but Sandy may have hit month-end results.

General Motors (GM, Fortune 500) reported a 5% rise in sales. Chrysler Group did the best of the traditional Big Three with a 10% increase. Ford's (F, Fortune 500) gain was just 0.4%.

Toyota Motor (TM) sales increased 15.8%, but that was in comparison to a year earlier when results were still depressed by the earthquake and tsunami that had struck Japan.

Results were all weaker than forecasts, which had been made well before the severity of Sandy was known.

"The storm likely had an impact on October sales, especially since it came at the end of the month," said Jessica Caldwell, senior analyst with Edmunds.com.

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Edmunds estimates that 30.5% of October sales typically take place in the final days of the month, as dealerships push to make their targets. The region most directly affected by Sandy typically accounts for about 20% of vehicle sales.

"Those sales won't disappear altogether," said Caldwell. She said some buyers may just end up buying in November. And those with cars damaged by the storm may be forced into the market.

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U.S. car buyers have been returning to showrooms in recent months as greater access to financing, pent-up demand for vehicles and some improvement in the jobs market have lifted consumer confidence and created demand for new cars.

The sales pace for September car sales reached the highest level in more than four years.

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First Published: November 1, 2012: 11:24 AM ET


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