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Auto sales end 2012 on strong note

| Friday, Jan. 4, 2013, 12:01 a.m.

DETROIT — A steadily improving economy and strong December sales lifted the American auto industry to its best performance in five years in 2012, especially for Volkswagen and Japanese-brand vehicles, and experts say the next year should be even better.

Manufacturers on Thursday announced their final figures, which were expected to total 14.5 million — 13 percent better than 2011.

More than three years after the federal government's $62 billion auto industry bailout, Americans had plenty of incentive to buy new cars and trucks in the year just ended.

Sales were far better than the bleak days after the economy tanked and GM and Chrysler sought bankruptcy protection.

Back then, sales fell to a 30-year low of 10.4 million, and they are still far short of the recent peak of about 17 million set in 2005.

The best part of 2012 came at the end, when special deals on pickup trucks and the usual round of sparkling holiday ads helped December sales jump 10 percent to more than 1.3 million, the TrueCar.com auto pricing site predicted. That would translate to an annual rate of more than 15.6 million, making December the strongest month of 2012.

Volkswagen led all major automakers with sales up a staggering 35 percent, led by the redesigned Passat midsize sedan. VW sold more than five times as many Passats last year as it did in 2011.

Jesse Toprak, vice president of industry trends for TrueCar, said VW has the right mix of value and attractive vehicles and called the company “the force to watch in the next several years in the U.S. market.”

Toyota, which has recovered from the earthquake and tsunami in Japan that crimped its factories two years ago, saw sales jump 27 percent for 2012. Honda sales rose 24 percent for the year. Nissan and Infiniti sales were up nearly 10 percent as the Nissan brand topped 1 million in annual sales for the first time.

Hyundai sales rose 9 percent for the year to just over 703,000, the Korean automaker's best year in the U.S.

Chrysler, the smallest of the Detroit carmakers, had the best year among companies. Its sales jumped 21 percent for the year and 10 percent in December. Demand was led by the Jeep Grand Cherokee SUV, Ram pickup and Chrysler 300 luxury sedan.

Full-year sales at Ford and General Motors lagged. Ford edged up 5 percent, and GM rose only 3.7 percent for the year.

For December, Ford was up 2 percent and GM up 5 percent.

GM executives said the automaker has the oldest model lineup in the industry, yet it still posted a sales increase and commanded high prices for cars and trucks. The company plans to refurbish 70 percent of its North American models in the next 18 months and expects to boost sales this year.

North American President Mark Reuss said GM won't give away cars and trucks with discounts like it has in the past.

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