FI showroom red and grey logo
MenuMENU
SearchSEARCH

January Vehicle Sales Surprise Automakers

by Staff
February 2, 2001
3 min to read


Americans bought new cars and sport utility vehicles last month as though the economy were booming, surprising auto executives worried about plunging consumer confidence and an economy that has slowed almost to a standstill, according to a Feb. 2 story by Keith Bradsher in The New York Times.


Automakers sold cars, vans, SUVs and pickups at a seasonally adjusted annual rate of 17.2 million vehicles in January, compared to the pace of 15.4 million vehicles set in December. The auto industry traditionally considers anything above 16 million to be a strong month.

Ad Loading...


Sales were down 6 percent from those in the month a year earlier, when the industry was enjoying an extraordinary boom. For all of last year, automakers sold a record 17.4 million cars and light trucks.


Good weather and large shipments of cars to corporate and government fleets probably played some role in the rebound in sales after December, said George Pipas, Ford Motor's director of United States market analysis, adding that the true strength of the market was probably between the December and January levels.


The auto sales figures were released on the same day as a report showing that United States manufacturers cut their production sharply in January.


The auto market's strength in January produced one immediate benefit for the economy in the Midwest: no automakers announced further cuts in their targets for production in the first quarter after doing so repeatedly in December and early January. GM, Ford and Chrysler officials did say Feb. 1 that they would idle several factories for a week or two this month but added that these production cutbacks were part of plans set in early January to reach the first-quarter targets rather than a further retrenchment, according to the Times.


GM, Ford and Chrysler have been idling factories for a week or two at a time and furloughing the workers. Chrysler announced on Jan. 29 that it would reduce its work force by 26,000 people over the next three years, partly by laying off up to 7,100 people in the U.S. and Canada and 3,100 in Mexico and South America.

Ad Loading...


GM's sales fell 5.1 percent last month, while Ford's dropped 11.6 percent, and sales at Chrysler tumbled 16.2 percent. GM prospered partly because of enormous shipments of cars to fleets; according to Paul Ballew, executive director of market analysis at General Motors, the company's extra fleet sales alone had increased the seasonally adjusted annual rate of sales in January by 200,000 vehicles.


He also cautioned that January and February are weak months for auto sales, making it hard to draw conclusions.


But GM also did extremely well in selling full-size SUVs, which are mostly sold at high profits to families and not to fleets, which typically buy unpopular models available at deep discounts. GM's sales of full-size sport utilities jumped 18 percent even as Ford's sales of them dropped more than 20 percent.


Dieter Zetsche, the former Mercedes executive sent from Germany two months ago to become Chrysler's chief executive, said in a Feb. 1 statement that uncertainty preceding the layoffs announced on Jan. 29 had hurt the company's sales in January.


Foreign automakers had a mixed performance in January, as some benefited from new models and from the strength of the dollar against the yen and euro, which made it much cheaper to import cars and car parts to the U.S.

Ad Loading...


Mitsubishi's sales jumped 15.2 percent, Honda's sales grew 11.1 percent and BMW's were up 9.8 percent. But Nissan's sales dropped 4.4 percent, the Mercedes unit of DaimlerChrysler had a 7 percent dip and Toyota's sales were down 11.4 percent.

Topics:F&I

More F&I

Laptop computer, tablet, calculator and notebook on a desk
F&Iby John TabarAugust 20, 2026

Just Do It

F&I managers need training, but instead of resisting application or expecting perfection, they should improve by simply acting on what they learn.

Read More →
stacks of coins, a calculator, paperwork, and a pair of glasses in the background, text Lender Experience Drives Dealer Decisions, F&I and Showroom
Auto Financeby Lauren LawrenceAugust 12, 2026

Dealer Lender Preferences Revealed

When lenders provide consistent, fast service, their overall satisfaction scores with dealers greatly improve, according to JD Power research.

Read More →
Leading with Purpose thumbnail. Trent white pictured in front of titled graphic.
F&IAugust 5, 2026

Leading with Purpose

In this video, Trent White explains how understanding your people’s 'why' is a key leadership responsibility of F&I professionals and how that mindset drives dealership engagement, trust and performance.

Read More →
Ad Loading...
Photo of a keyring with mltiple keys, including a car key fob, on a white surface
F&IJuly 15, 2026

Integrating Nontraditional F&I Products

The niche presents a strategic advantage for auto dealerships as they move to adapt to fast-changing consumer expectations in today’s market.

Read More →
Photo of businessman's hands holding eyeglasses at a desk
F&Iby Rick McCormickJuly 7, 2026

Trust Is Personal

Technology, no matter how efficient, can’t replace what the human F&I manager can do, which is to bridge the divide between cyberspace and the in-store experience.

Read More →
Photo of executive in a sports coat and glasses
Industryby StaffJuly 2, 2026

Amplify 2026 Billed as Turning Innovation Into Results

Reynolds and Reynolds says its annual retail summit will connect dealers with practical strategies, peer insight, and technology-driven ideas.

Read More →
Ad Loading...
Woman standing on stage smiling.
F&Iby Lauren LawrenceJuly 1, 2026

Own Your Outcome: F&I in the Digital Customer Journey

Finance has historically been the last step in the car-buying process, but it doesn’t have to be. The customer’s journey starts long before they arrive at the dealership, and so should F&I’s involvement.

Read More →
$100 bill and magnifying glass on top of paper that says insurance policy terms and conditions.
F&Iby Lauren LawrenceJune 29, 2026

Tariffs Could Raise Insurance Premiums

As U.S. import tariffs affect repair costs, consumers might find it more affordable to replace a damaged vehicle, according to recent Insurify tariff analysis.

Read More →
Red toy car sitting on top of coins.
Auto Financeby Lauren LawrenceJune 24, 2026

Smaller Loans, Longer Terms

The youngest generation of car buyers is more likely to finance less expensive vehicles, more than half of generation Z consumers borrowing less than $25,000.

Read More →
Ad Loading...
Under the hood of a Toyota Prius EV Hybrid car.
F&Iby StaffJune 15, 2026

New Lifetime Battery F&I Product Meant to Drive Dealer Traffic

EFG Cos. offering is intended to create lifetime auto dealer engagement with customers.

Read More →