August auto sales hit a 10-year high

DETROIT - U.S. auto sales beat all expectations in August, coming in at the highest pace since July 2005 despite there being one less selling day during the month than last year and a volatile stock market as the month was wrapping up.

Total sales of 1.6 million were up half a percent from a year ago and came in at a seasonally adjusted rate of 17.8 million units, compared with 17.3 million units a year ago, according to Autodata Corp. It was the best August since 2003 and defied the expectations of virtually every forecasting company, largely because last year's August tally had the benefit of the Labor Day holiday.

Stock market woes did not deter shoppers, and with Labor Day promotions already being advertised, all signs point to a strong September to come and a strong finish to the year.

Ford U.S. sales were up 5.6 percent in August, according to Autodata. Ford puts the increase at 5.4 percent because it includes heavy-duty truck sales.

Automobiles were up 1.7 percent, and General Motors saw its sales drop 0.7 percent.

Companies that rely on car sales more than trucks reported some of the bigger sales declines. Toyota's U.S. sales fell 9 percent to 190,894 with all its popular cars down, including the Camry, Corolla and Prius. Honda sales were down 7 percent to 155,491 with the Honda Odyssey minivan and the Acura RDX among the few gainers.

"Cars remain the big challenge," said Michelle Krebs, senior analyst with AutoTrader, noting even big incentives are not spurring car sales in the current market where trucks and crossovers are in high demand.

Volkswagen's sales fell 8 percent to 32,332, and Nissan's sales increased 1 percent to 133,351 for the month. Kia did well, with its best-ever August sales of 58,897 vehicles, an 8 percent increase and the brand's fourth straight monthly sales record. Hyundai also posted its best August results; sales of 72,012 were up 3 percent.

If there was consumer hesitancy due to the tumultuous stock market late in the month, it was overshadowed by the lure of low interest rates and gasoline prices, which have kept sales of trucks and utility vehicles strong.

"Now is a good time to buy a vehicle," said Yong Yang, Ford's senior U.S. economist.

It was record Jeep sales that allowed Fiat Chrysler to maintain its impressive year-over-year sales streak for a 65th consecutive month - a feat some doubted going into the final weekend of the month. The Detroit-area automaker sold 201,672 new cars and trucks in August compared with 198,397 for the same month last year.