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Car sales post strong 13 pct. rise for year

DETROIT - A steadily improving economy and strong December sales lifted the American auto industry to its best performance in five years in 2012, especially for Volkswagen and Japanese-brand vehicles, and experts say the next year should be even better.

In this Wednesday, Dec. 5, 2012, photo, Honda Civic and Honda CRVs are seen outside of a Honda car dealership in Des Plaines, Ill. The U.S. auto industry ended 2012 on a high note, with December sales the strongest they have been since before the recession. Analysts predict an even bigger year in 2013, as a stronger economy, low-interest rates, aging cars on the road and competitive new products continue to draw buyers to dealerships. (AP Photo/Nam Y. Huh)
In this Wednesday, Dec. 5, 2012, photo, Honda Civic and Honda CRVs are seen outside of a Honda car dealership in Des Plaines, Ill. The U.S. auto industry ended 2012 on a high note, with December sales the strongest they have been since before the recession. Analysts predict an even bigger year in 2013, as a stronger economy, low-interest rates, aging cars on the road and competitive new products continue to draw buyers to dealerships. (AP Photo/Nam Y. Huh)Read moreAP Photo/Nam Y. Huh
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DETROIT - A steadily improving economy and strong December sales lifted the American auto industry to its best performance in five years in 2012, especially for Volkswagen and Japanese-brand vehicles, and experts say the next year should be even better.

Carmakers on Thursday announced their final figures, which totaled 14.5 million - 13 percent better than 2011.

Americans had plenty of incentive to buy new cars and trucks in the year just ended.

Unemployment eased. Home sales and prices rose. And the average age of a car topped 11 years in the United States, a record that spurred people to trade in. Banks made that easier by offering low interest rates and greater access to loans, even for those with poor credit.

"The U.S. light-vehicle sales market continues to be a bright spot in the tremulous global environment," said Jeff Schuster, senior vice president of forecasting for LMC Automotive, a Detroit-area industry forecasting firm.

Year-end deals on pickup trucks and the usual round of sparkling holiday ads helped December sales jump 10 percent to more than 1.3 million, the auto-pricing site TrueCar.com said. That would translate to an annual rate of more than 15.6 million, making December the strongest month of 2012.

Toyota, which has recovered from an earthquake and tsunami in Japan that crimped its factories two years ago, said that sales jumped 27 percent for 2012. December sales were up 9 percent. Unlike 2011, the company had plenty of new cars on dealer lots for most of 2012.

Honda sales rose 24 percent for the year. Nissan and Infiniti sales were up nearly 10 percent, as the Nissan brand topped one million in annual sales for the first time.

Volkswagen led all major automakers with sales up 35 percent.

Chrysler, the smallest of the Detroit carmakers, had the best year among U.S. companies. Its sales jumped 21 percent for the year and 10 percent in December. Demand was led by the Jeep Grand Cherokee SUV, Ram pickup, and Chrysler 300 luxury car.

Full-year sales at Ford and General Motors lagged. GM's rose only 3.7 percent for the year, while Ford edged up 5 percent. For December, GM sales rose 5 percent, while Ford was up 2 percent.

Cherry Hill-based Subaru of America Inc. reported that sales were up 26 percent.

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