GM, Chrysler Post Higher U.S. Sales in November -- Update

By Michael Calia 

General Motors Co. and Chrysler Group LLC on Tuesday posted their best November U.S. sales figures in several years, driven by a favorable environment for consumers.

Auto makers, which offered deals and discounts during the weeks leading up to Black Friday, are expected to turn in one of their best November sales performances in years.

The preholiday promotions, along with an improving economic picture, had been expected to drive customers to dealer lots last month, even if average transaction prices rose and incentive spending slipped year-over-year, as researcher TrueCar said Tuesday. Both auto researcher Kelley Blue Book and information website Edmunds.com, likewise, had projected overall sales growth for the industry of about 2%.

"The buzz around Black Friday helped drive strong showroom traffic, but there was a lot more at work in the market," GM sales executive Kurt McNeil said in a news release. "More people have jobs and job security, their wages are starting to increase, household wealth is growing and low pump prices look like they're here to stay through 2015."

GM said U.S. sales rose 6.5% to 225,818 vehicles last month, making it the best November for the company in seven years. Retail sales rose 5%, GM said, while fleet deliveries jumped 11%.

Chrysler, which is the third-biggest U.S. auto maker, relied on big promotions leading into the holiday-shopping season, offering a variety of deals that included thousands in cash back and discounts, and it appears to have paid off.

Chrysler said it sold 170,839 vehicles last month, an increase from 142,275 in the same month a year ago. It was the company's best November since 2001.

Truck sales rose 18% to 129,320 vehicles. Car sales, which had recently been posting weaker results than those for trucks, jumped 26% to 41,519 units.

The Ram and Jeep brands again delivered for Chrysler, registering sales gains of 31% and 27%, respectively, while each enjoyed their best November ever, the company said. Chrysler's namesake car brand posted a 30% gain, driven by its 200 model sedan, whose sales more than doubled.

Chrysler projected November's total industry sales in the U.S. to be a seasonally adjusted annualized rate of 17.5 million units, while GM estimated 17.1 million. Kelley Blue Book and Edmunds had projected 16.8 million and 16.7 million, respectively.

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