U.S. car and light truck sales rose 10.3 percent to 12.78 million in 2011, marking the industry's second consecutive year of recovery from its near collapse in 2009.
And the biggest gainers, as a group, were the three American-based automakers.
With manufacturing, consumer sentiment and financial indices pointing higher in December, many buyers ventured back into showrooms, said Ellen Hughes-Cromwick, economist at Ford Motor Co.
"The latest economic statistics show some very positive momentum," she said.
Compared to December, 2010, last month's sales were up 8.7 percent.
"It's now clear auto sales should continue to grow in 2012, barring a shock to the system," said Don Johnson, vice president for U.S. sales at General Motors Co.
Sales estimates for 2012 range between 13.5 million and 14.5 million vehicles — another consecutive gainer, but still well below the peak levels of the last decade.
Detroit's automakers regained nearly two percentage points of the U.S. market, as Japan's automakers were battered by natural disasters — a record quake and deadly tsunami in Japan in March, and massive floods in Thailand, where they have plants.
GM, Ford and Chrysler Group LLC briefly held more than 50 percent of the U.S. auto market. By the end of the year, however, their advantage had narrowed. Their combined market share totaled 46.9 percent, up from 45.1 percent in 2010.
Japanese brands lost a combined 3.6 points of market share. Bucking the trend: Nissan Motor Co., which resolved its supply issues faster than its Japanese rivals. Nissan's U.S. sales rose 14.7 percent in 2011, and its market share edged up 0.4 point to 8.2 percent.
The big winner: South Korea's Hyundai-Kia Automotive Group. Helped by hits such as the new Hyundai Elantra and Kia Optima, the group's share of the American market expanded to 8.9 percent from 7.7 percent.
Trucks continue roll
Despite plenty of new car launches and lots of talk about downsizing, truck sales again edged out car sales in 2011.
According to automotive research firm Autodata, trucks were 51.2 percent of the light vehicle market, up from 50.5 percent in 2010. Cars accounted for 48.8 percent, down slightly from 49.5 percent in 2010.
While some cars, such as GM's Chevrolet Cruze, gained traction last year, others struggled.
The impact of the natural disasters in Japan constrained car supplies for several months and disrupted key launches, such as the rollout of Honda Motor Co.'s stalwart Civic. Its introduction was delayed, and some low-trim versions of the car garnered lackluster reviews.
Ford pickup U.S. bestseller
Ford's F-Series pickup remained the best-selling vehicle in the United States for the 30th straight year, but the company ended 2011 with less stellar results than its U.S. competitors.
The Dearborn automaker sold 2,143,101 cars and trucks in the United States last year, an 11 percent rise over the previous year.
It was enough to keep pace with the industry and hold on to the impressive share gains Ford has made since forgoing a government bailout and finding its own way back to profitability in 2009.
Ford's share of the U.S. market was 16.8 percent, up from 16.7 percent in 2010.
The automaker's failure to post significant share gains in 2011 was largely the result of its decision to ax its mid-market Mercury brand in 2010, and the poor performance of its luxury Lincoln marque.
With those brands stripped out of the equation, Ford sales were up a more respectable 17.4 percent last year.
Ken Czubay, Ford's U.S. sales and marketing chief, acknowledged the company has a lot of work to do with Lincoln, which is struggling to make headway in a very competitive market, as some competitors heaped incentives on the hoods of their luxury cars.
Czubay said Ford resisted the pressure to slash prices and profits. And he said Ford is investing heavily in a major makeover of Lincoln's product lineup.
"New products are the key," he said Wednesday.
Chrysler posts biggest gain
A resurgent Chrysler Group LLC posted the biggest gain of any full-line automobile manufacturer in 2011.
It sold 1,369,114 cars and trucks in the United States last year, a gain of 26.2 percent that allowed the Auburn Hills automaker to increase its share of the market to 10.7 percent from 9.4 percent a year ago.
"Chrysler Group finished a year of growth on a strong note, with our December retail sales soaring 45 percent to our highest dealer retail sales in four years," said Reid Bigland, Chrysler's U.S. sales chief, in a statement. "We were the fastest-growing automaker in the country, increasing our market share 1.3 percentage points during 2011."
Its success was spurred by new products like the Jeep Grand Cherokee and Chrysler 200, but its Fiat brand struggled to muscle its way back into a crowded U.S. small car market in 2011, after an absence of nearly 30 years.
Chrysler, which was taken over by the Italian automaker as part of a 2009 bailout brokered by the federal government, had hoped to sell 50,000 Fiat 500 subcompacts in North America last year, but did not even manage to hit 20,000 in the United States — despite some positive reviews.
"They've had less luck with Fiat," said analyst Rebecca Lindland of IHS Inc. "But the reasons for that are pretty clear: They just didn't have the dealerships." But more of them are coming every month, and Fiat's sales were up 44 percent, month-over-month, in December.
Chevy dominates GM sales
GM said U.S. sales were up 14 percent in 2011, and its Chevrolet brand accounted for 71 percent of all U.S. sales.
Chevy represented 1.8 million of GM's 2.5 million U.S. sales. In December, Chevy was the only one of GM's four surviving U.S. brands to increase sales.
"We were able to grow all four of our brands and re-establish Chevrolet as a force to be reckoned with in the passenger car business. This gives us a very solid foundation to compete in a market that we expect to keep growing," said Don Johnson, vice president for GM's U.S. sales.
Chevrolet's results were boosted by a 42 percent year-over-year increase in Chevrolet Sonics and about half of buyers for the new subcompact are leaving other automakers' brands to buy a Sonic.
GM also said Chevy Cruze sales were up 54 percent; Camaro sales grew by 20 percent and Malibu sales rose 13 percent.
For all of 2011, Chevrolet sales were up 13.4 percent. Among GM's other brands, GMC sales grew 18.8 percent; Buick 14.3 percent; and Cadillac 3.7 percent.
Volt loses battle of electrics
GM lost the battle in 2011 for best-selling electric vehicle.
The Detroit automaker had its best-ever sales month for its extended-range Chevrolet Volt in December, but failed to reach its goal of 10,000 sales for 2011.
GM said it sold 1,562 Volts in December, including 992 to retail customers. Over the full year, it sold 7,671.
Nissan, meanwhile, sold 954 all-electric Leafs in December and 9,674 for all of 2011. It has sold about 21,000 Leafs worldwide.
GM has said it expects to sell 45,000 Volts next year in the United States, and export 15,000. But it has been hindered by an investigation into two battery-pack fires after government crash tests.
Sales of Toyota's hybrid Prius fell 3.2 percent in 2011. But it still sold 136,463, far outselling all electric vehicles sold in 2011. All hybrids account for less than 3 percent of all U.S. sales; the Prius has cornered about half of all hybrid sales.
Lexus loses its crown
Toyota's premium Lexus brand, the leader in the U.S. luxury car market for the past 10 years, fell behind German rivals BMW and Mercedes-Benz.
Lexus sold 198,552 cars and SUVs in 2011, while BMW and Mercedes sold well over 200,000 in the U.S., according to Autodata, after a frenzied contest in December. Toyota officials pledged Wednesday that Lexus would be the "fastest-growing" luxury brand in the U.S. this year.
Volkswagen races ahead
Volkswagen recorded the biggest U.S. sales gains of any European brand after rolling out a U.S.-built Passat car in May.
Helped by an 82.7 percent surge in Passat sales, the VW brand sold 324,400 vehicles in the U.S., a 26.3 percent increase over 2010.
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