US Jan auto sales indicate strong start to 2013

GM said purchases of its Chevrolet Silverado and GMC Sierra full-size pickup trucks jumped by about one-third for each model. Ford's F-Series truck sales were up 22 percent, while Chrysler's Ram pickup trucks were up 14 percent. Pickup trucks generate some of the strongest profits for automakers.

GM, the largest US automaker by sales, said incentives on its current trucks were higher compared with a year ago. GM will launch its redesigned lineup of trucks in the second quarter.

Outpacing the industry

US auto sales in 2012 rose more than 13 percent to 14.5 million cars and trucks, and GM has forecast an increase to between 15 million and 15.5 million for 2013.

US auto sales are among the early indicators of economic health each month. US employment grew modestly in January and gains in the prior two months were bigger than initially reported, despite the unexpected contraction in economic output during the last three months of 2012.

GM posted a 16 percent year-on-year increase, while its smaller rival Ford logged a 22 percent jump. Japan's Toyota was up nearly 27 percent. The three automakers, which account for nearly half the US market, beat Wall Street forecasts.

But others, including Chrysler, fell short of estimates. The No 3 US automaker, majority owned by Italy's Fiat SpA , posted a 16 percent gain. Nissan Motor Co's sales increased by 2 percent, and Honda's 12.8 percent rise came in below the more than 20-percent gain projected by analysts.

Sales of cars and crossovers, such as the recently launched Ford Fusion mid-size sedan and the Chevy Equinox mid-size crossover, also helped boost the industry last month.

But sales for Ford's Lincoln luxury brand fell 18 percent, hurt by inventory shortages of its newly launched MKZ sedan.

Ford said it was holding back those sedans to complete more rigorous quality checks. MKZ inventory should be at planned levels by April, Ford US sales executive Ken Czubay said, adding that the checks were "paramount" to relaunching the brand.