Over the past few months, gas prices were constantly on the rise and recently it became obvious the tendency will continue to develop towards new peaks. For consumers higher gas prices not only shakes their sensible confidence in markets but also an expense constantly expanding. But if automakers selling gas fueled vehicles didn’t have much appeal to customers, the high gas prices boosted Chrysler’s Sedan.
February was the peak in the ascension of the gas prices within nine months. For most automakers that meant poor business, but Chrysler and Nissan Motor Co had a raving month exceeding analysts’ estimates.
Last month, Chrysler’s sales in the United States rose 40 percent to 133,521 delivered cars and light trucks. Compared with the same period last month the improvement is obvious. In February 2011, Chrysler sold only 95,102 units.
Analysts explained that although the fuel efficient cars were likely to increase in demand as gas prices boosted, the actual surprise came from truck sales. Alec Gutierrez, analyst for Kelley Blue Book told Bloomberg:
“For fuel efficient vehicles we expected to see demand as gasoline prices really surged through the month, but the big surprise is on the truck front. It speaks to the broad based nature of this recovery”.
As Jesse Toprak, truck sales have been good because consumers’ confidence is back. “It seems we’ve all underestimated the strength in the retail numbers. There’s pent up demand being met even for larger vehicles because consumers are feeling more comfortable”.
A report by Autodata Corp. points out that in February U.S. sales for light vehicles rose to 15.1 million seasonally adjusted annual rate, marking the highest level since same month four years ago. Also, consultant Maryann Keller estimated for Bloomberg Radio that February had high odds to be the first month in a long time for the U.S. auto industry to sell more than 1 million cars.
According to Chrysler’s statement, the most successful vehicle was its 200 midsize Sedan, a car that recorded a big gain. Sedan 200 sold four times better than one year earlier, with 9,717 sold units. Sedan 300 also recorded good results, increasing by six times than February 2011.