Chrysler's sales jumped in 2011
Last year was a good year for Detroit’s auto makers. They saw increased sales as natural disasters in Japan and Thailand hurt their competition and the U.S. economy showed renewed strength.
GM, Ford, and Chrysler’s combined share of the U.S. market rose to 47% from 45% in 2010 and sales were 10% higher in 2011 than the prior year.
This is a big change from 2008, when the recession forced GM and Chrysler into managed bankruptcy and billions of dollars in government loans to survive.
Today, the Big Three are in great shape and profitable, with new models and strong sales. In December, Chrysler, the weakest of the three, saw sales jump 37.1% from the year-earlier period on the back of its new Jeeps and sedans.
At G.M., sales rose 4.6% in December, while Ford saw sales grow by 10.1%. The New York Times writes,
With about 12.8 million vehicles sold, it was the industry’s best year since 2008 — although still well short of the 16 million annual sales level enjoyed before the recession.
However, looking ahead to 2012, the article continues,
But the road ahead for General Motors, Ford and Chrysler will be crowded with tougher competition from foreign automakers, as the relatively healthy American car market becomes an even bigger draw.
So, while 2011 was a great year for the Big Three, barring stumbles from Toyota and Honda especially, and other foreign auto makers, it is certain to be a more challenging year in 2012.
The focus will be on the U.S. market as demand in Europe has cratered over the Eurozone crisis. However, if the U.S. economy continues to grow steadily and barring external shocks, the Big Three will likely do well in 2012, making them a reasonable investment bet for the year.
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