Reuters - Video

EDITION: U.S. | U.K. | IN

Personal Finance

What recalls? GM sales still rise

Tuesday, Jul 01, 2014 - 02:08

U.S. auto sales came in stronger than expected, with General Motors still showing gains despite recalling 29 million cars this year. Bobbi Rebell reports.

▲ Hide Transcript

View Transcript

U.S. automakers didn't miss a beat in June- dealerships armed with new products defying expectations for softer sales. Recall-plagued General Motors up one percent in June. Ford, a company transitioning to new models, also better than forecasts. Chrysler, Toyota and Nissan posting the biggest gains. With the average car around 11 years old- buyers want to treat themselves to something new: Morningstar's David Whiston: SOUNDBITE: DAVID WHISTON, SENIOR EQUITY ANALYST, MORNINGSTAR (ENGLISH) SAYING: "I think there is a lot of reasons to go into the show room and get a car that has a lot more active safety features or a lot more info-tainment than even, say, a 2008-2009 model let alone a 2002 model year." According to research firm J.D. Power- Consumer spending on new vehicles in the first half also reached a record $194 billion. Average transaction price? close to $30,000. Kelley Blue Book's Senior Editor Karl Brauer: SOUNDBITE: KARL BRAUER, SENIOR EDITOR, KELLY BLUE BOOK (ENGLISH) SAYING: "They are all going up, and this is great news for all these automakers because higher transaction prices mean higher profit. So they are moving in a direction that these guys would like. Now, it's important to keep one thing in mind, and that is the lease situation. Meaning that lease rates are higher really than they have ever been before. They are above 25 percent." He says that consumers focus on the monthly payment- and don't feel the pinch of higher prices. Consumers also haven't focused on GM's recalls- but Brauer warns now that new cars are included- that could change. SOUNDBITE: KARL BRAUER, SENIOR EDITOR, KELLY BLUE BOOK (ENGLISH) SAYING: "The reason that it hasn't impacted their new cars so far is that most of these products are older, out of production vehicles and new car buyers just don't even consider it related to what they are looking at when they go into the showroom now. But some of the new cars that were just added to the recall yesterday are in the showroom now. This will be a real test to see how far GM can push these recall numbers- they have gotten quite high- before it impacts their new vehicle sales." For the year though- auto industry sales look to come in strong- already on track to beat forecasts of 16.4 million vehicles.

What recalls? GM sales still rise

Tuesday, Jul 01, 2014 - 02:08

Top News »

The Exchange »

The Exchange: Hot commodity The Exchange: Hot commodity

Wed, Jul 16, 2014 - (9:25)

The Exchange: Constitutional crusade The Exchange: Constitutional crusade

Wed, Jun 25, 2014 - (11:35)

The Exchange: The value of money The Exchange: The value of money

Mon, Jun 02, 2014 - (9:53)

The Exchange: China’s Second Continent The Exchange: China’s Second Continent

Tue, May 27, 2014 - (9:35)

The Exchange: A master of business arts The Exchange: A master of business arts

Thu, May 08, 2014 - (8:24)

The Exchange: America's bankrupt cities The Exchange: America's bankrupt cities

Mon, May 05, 2014 - (8:52)

The Exchange: Let the rocking commence The Exchange: Let the rocking commence

Tue, Apr 08, 2014 - (8:13)

The Exchange: The Moneyball fallacies The Exchange: The Moneyball fallacies

Mon, Mar 24, 2014 - (9:54)

Is doing good a good business? Is doing good a good business?

Mon, Mar 17, 2014 - (7:38)

Reuters Investigates »

Re-homing victim: "I could have been dead" Re-homing victim: "I could have been dead"

Wed, Feb 19, 2014 - (8:24)

Cops and loggers in the Amazon rainforest Cops and loggers in the Amazon rainforest

Fri, Jan 10, 2014 - (4:01)

"Passed around like a dog" "Passed around like a dog"

Thu, Aug 29, 2013 - (6:32)

Adopted, then abandoned online Adopted, then abandoned online

Thu, Aug 29, 2013 - (13:21)

How the DEA keeps its secrets secret How the DEA keeps its secrets secret

Mon, Aug 05, 2013 - (1:36)

How education lost its role as the great equalizer - Reuters Investigates How education lost its role as the great...

Mon, Dec 17, 2012 - (7:52)

Jihad Jane: From abused child to American jihadist - Reuters Investigates Jihad Jane: From abused child to American...

Sat, Dec 08, 2012 - (10:01)

Jihad Jane: The order to kill - Reuters Investigates Jihad Jane: The order to kill - Reuters...

Sun, Dec 09, 2012 - (10:39)

Moving Pictures »

Images of August Images of August

Fri, Aug 29, 2014 - (1:00)

Mending dolls, teddies and hearts Mending dolls, teddies and hearts

Fri, Aug 22, 2014 - (3:12)

"Old timers" sail the Chesapeake Bay "Old timers" sail the Chesapeake Bay

Mon, Aug 11, 2014 - (2:27)

Burned memories Burned memories

Fri, Aug 08, 2014 - (3:02)

Images of July Images of July

Thu, Jul 31, 2014 - (1:20)

World Cup: passion on the pitch World Cup: passion on the pitch

Fri, Jul 11, 2014 - (1:00)

A refugee in America gives back A refugee in America gives back

Wed, Jul 02, 2014 - (3:25)

A long search for refuge A long search for refuge

Fri, Jun 20, 2014 - (3:04)

World Cup: Around the globe in 50 goals World Cup: Around the globe in 50 goals

Fri, Jun 06, 2014 - (1:08)

VIVID – Sydney’s spectacle of light VIVID – Sydney’s spectacle of light

Fri, May 30, 2014 - (1:37)