May 2012 Car Sales sees Honda and Toyota Gaining Strong

Despite earthquake related issues such as shortages, Toyota and Honda outperform the other automakers during the May 2012 car sales month. While news is buzzing about the success of the American automotive industry, Toyota climbed an amazing 88.9 percent while Honda reached a 46.0 percent growth rate. Fiat owned Chrysler was working hard to catch up to Toyota though with an 82.34 percent growth. While this may all sound great on paper, the facts are that May is the worst month according to industry analysts. The analyst’s expectations for the May 2012 sales season was set to 14.4 million vehicles sold between all automakers. While all numbers aren’t in yet, it looks as if the total is going to be around 13.8 million vehicles sold. This is a significant difference and not the great news everyone was hoping for in May.

It makes sense that Toyota, Honda and the luxury brand Acura would have significant increases in their sales percentages due to the earthquakes and tsunamis that had devastated Japan in March of 2011. In May of 2011, recovery for the Japanese automakers was not at a sufficient level to produce new cars. The May 2011 sales reports for Toyota reflected a 32 percent decrease while Honda’s sales were reported at a 22.4 percent loss in sales. They had simply ran out of inventory to keep selling and were not able to produce more. Their impressive increases for this year helped to make up for this loss, but was not as much of an overall increase as the numbers might tell since it had to compensate for loss from the disasters.

Chrysler and Dodge were up 30 percent from May 2011 to put them in third place behind Toyota and Honda. There 10 percent increase in May 2011 was primarily due to sales from the Ram and Jeep product lines. General Motors had an increase of 10.9 percent from last year and Ford had a 12.6 percent increase over last year’s totals. While increase is good, it is not as much as what analysts had hoped they would be.

Source: Autoblog

Author: George GIbson

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