SOUTHFIELD, Mich. -- Automakers on Tuesday reported the best two-month stretch of U.S. sales in 15 years, another sign that the nation's economy is improving.
General Motors and Fiat Chrysler were among manufacturers posting October results that topped analysts' estimates after a robust September, with the continued popularity of expensive trucks and luxury sport utility vehicles showing that buyers are willing to spend. Ford and Honda fell short of predictions.
Growing demand for autos is adding to evidence the U.S. economy is strengthening. Sales are surging as job growth, available credit and affordable fuel encourage shoppers to replace aging models, especially with sport utility vehicles.
"The consumer is driving this," Jeff Schuster, an analyst for consulting firm LMC Automotive, said in an interview. "You have a consumer who feels good about the economy, who wants a new vehicle and who has the means to get it with relatively cheap credit. Everything is aligning."
GM forecast an annualized U.S. sales rate for all automakers, adjusted for seasonal trends, of 18.2 million, the same as in September, which would be the first time the industry has posted back-to-back months exceeding an 18 million pace since February 2000. That's the year the industry set a sales record of 17.4 million. Analysts' average estimate was for an October sales pace of 17.7 million. September's rate was the fastest in more than a decade.
"It's going to be hard not to hit that record at this pace," said Schuster, noting that the industry roared back from weak sales in the early months of the year.
All of the major automakers, except Volkswagen, were projected to report October increases. Toyota, with the smallest of those projected gains at 8.5 percent, said that its sales rose more than 10 percent.
"October was a huge month for the industry, smashing expectations and continuing its hot streak," said Bill Fay, group vice president and general manager for the Toyota division, said in an emailed statement. The brand's RAV4 and Highlander SUVs set records for October.
GM sales rose 16 percent, exceeding the average analyst estimate of 12 percent. Cadillac, Chevrolet and GMC all reported increases of at least 13 percent, while Buick sales slipped 0.2 percent. Sales of the Equinox SUV rose 25 percent while the automaker also more than tripled sales of the Chevy Colorado and GMC Canyon midsize pickups.
Cadillac, which has been GM's weakest brand, also had a strong month, with big gains for the SRX and Escalade SUVs.
Fiat Chrysler sales rose 15 percent, extending its streak of monthly gains to 67 thanks to a 33 percent increase for the Jeep brand. It reported selling 195,545 vehicles last month, exceeding the 13 percent average of eight analysts' estimates compiled by Bloomberg. Jeep vehicles accounted for 38 percent of those deliveries with four models exceeding 10,000 sales, including Patriot, which reported a 56 percent increase. All brands reported increases as the unit posted its best October since 2001.
The industry was estimated to report a 10 percent increase in sales to 1.41 million. Projected gains include 9.1 percent for Honda. Nissan sales rose 13 percent, beating estimates for a 9.4 percent gain. Nissan brand sales rose 12 percent, while Infiniti deliveries jumped 23 percent, including a fivefold gain for the QX50.
Honda reported an 8.6 percent increase in October sales that fell short of the averages estimate for a 9.1 percent gain.
"Last month's sales strength continued to be broad based for the company with eight FCA vehicles setting October sales records across three of our brands," Reid Bigland, head of sales for FCA US, the unit formerly known as Chrysler, said in a statement Tuesday.
Fiat Chrysler projected an annualized pace, adjusted for seasonal trends, of 18.5 million, including medium and heavy trucks that typically account for at least 200,000 sales.
Jeep's sales have been aided by longtime stalwarts Wrangler, up 15 percent last month from a year earlier, and Grand Cherokee, which rose 7 percent, as well as newer ones, such as the resurrected Cherokee, which went on sale in 2013. Cherokee sales rose 12 percent.
Ford's gain missed estimates for a 14 percent increase. Deliveries of its top-selling F-Series pickup line, rose just 3.3 percent in October, while its second-best seller, the Escape sport utility vehicle, fell 0.8 percent. Ford's car sales jumped 16 percent, a bigger gain than its SUVs, driven by the redesigned Mustang sports car, which more than doubled its deliveries in the month. A trio of redesigned SUVs -- the Ford Edge, Explorer and Lincoln MKX -- gained 39 percent, 30 percent and 9.7 percent, respectively.
Toyota's sales totaled 204,045. Car sales rose 9.5 percent while SUV and truck sales jumped 19 percent thanks to strong sellers like the RAV4 SUV and the new Tacoma pickup. Sales of the Lexus luxury brand rose 13 percent.
Nissan sales rose to just over 116,000. Sales of the Nissan Rogue small crossover SUV jumped 70 percent.
Volkswagen offered $2,000 to its customers last month to blunt the impact of its diesel emissions scandal, but the Volkswagen brand sold just 74 more cars in October than it did a year ago. VW's other brands, Audi and Porsche, saw little effect because the scandal mostly affected four-cylinder diesels in Volkswagens. Audi sales rose 17 percent in October.
That could change. The U.S. Environmental Protection Agency on Monday accused VW of cheating on six-cylinder Audi and Porsche models, which VW denies.
In another sign that consumers are buying expensive cars, Jaguar Land Rover reported its best October ever with a 76 percent increase in sales to 8,187 vehicles.
Information for this article was contributed by David Welch, Mark Clothier and Keith Naughton of Bloomberg News and by Tom Krisher and Dee-Ann Durbin of The Associated Press.
A Section on 11/04/2015