Big pickups carried U.S. auto sales to their highest level in three years, according to an Associated Press report.
Demand for full-size pickups jumped 16% in August, helping to make it the strongest sales month since August 2009. Overall auto sales increased 20% from a year earlier to nearly 1.3 million, according to Autodata corp.
The rising demand shows that businesses need to replace aging trucks and feel more confident about the recovery in U.S. housing — an industry where pickups are essential for hauling equipment and crews.
“Businesses don’t usually go buy a fleet of trucks unless they have good reason to believe that business will be ramping up,” said Jesse Toprak, vice president of market intelligence for the TrueCar.com auto pricing service
Ford, GM and Chrysler, the biggest makers of full-size trucks, notched double-digit gains in overall sales last month.
In pickups, Ford’s F-Series, the top-selling vehicle in America, saw a 19% sales increase, as did Chrysler’s Ram pickup. Sales of General Motors’ Chevy Silverado rose 4%, while the GMC Sierra was up 9%. Toyota’s struggling big truck, the Tundra, posted a huge increase of 68%.
The rising demand helped push total U.S. auto sales last month to an annual rate of 14.5 million. That’s the best monthly sales pace since the government’s “Cash for Clunkers” rebate program in August of 2009.
Pent-up demand is part of the reason for last month’s truck increase. The average vehicle on U.S. roads is nearing 11 years old, and some are simply wearing out.
But automakers and industry analysts say the economic recovery — new housing in particular — is also starting to make buyers feel more comfortable about a big-ticket purchase.
There’s a direct correlation between the housing market and pickup sales, they say. When people who work in housing or other construction are more confident, they tend to invest in equipment. Some may be adding crews and need vehicles to get them to and from job sites.