Auto Makers Rebound In March; Will Ad Dollars Follow?
April 2, 2010 at 4:29 AM (PT)
In what should be good news for advertising budgets for radio -- along with installs for satcasters -- the auto business had a double-digit boost in sales, the best showing in two years during the month of MARCH.
THE NEW YORK POST reports, "Even bankrupt GENERAL MOTORS had a surprise 21% monthly sales jump, breaking its long slump. GM knocked FORD from its briefly held lead as the #1 U.S. carmaker. While FORD's MARCH deals surged 40%, it didn't have enough actual units sold to stay on top. For the year to date, GM and FORD tied, with 43% gains from a year earlier. Both offered new gas-miser technology across their models' lines, such as 40-miles-per-gallon hybrids and crossover SUVs."
In the most recent MEDIA MONITORS report on radio advertisers, only HONDA was in the top 10. Perhaps this MARCH surge in sales will translate into dollars flowing into radio sales departments.
TOYOTA seems to have survived its recall troubles over gas-pedal malfunction issues, reporting a 41% jump in sales for MARCH. NISSAN was up 43%, SUBARU climbed 46%, HONDA gained 23% and HYUNDAI rose 15.4% for the month.
BARCLAYS CAPITAL analyst BRIAN JOHNSON said DETROIT could get back to break-even sales of 12 million annual units. For the past six months, the industry has struggled with annual sales of around 10 million units.
[Is your station feeling an economic recovery? Let us know below!]