U.S. auto sales strengthened a year after bankruptcies began to batter the auto industry, with Chrysler Group LLC forecast to post its biggest monthly gain since 2005.
Industrywide deliveries in April may have risen to an annualized rate of 11.4 million light vehicles, the average of 8 analysts' estimates compiled by Bloomberg, compared with a year earlier. Chrysler, which entered Chapter 11 a year ago today before emerging controlled by Turin, Italy-based Fiat SpA, may have climbed 15 percent, 6 projections show.
The yearly rate of domestic sales in April may be less than the 11.8 million seasonally adjusted annualized pace in March, when Toyota Motor Corp. offered its biggest incentives to counter global recalls, spurring competitors to add discounts.
"The automotive industry is in full-blown recovery," said Jesse Toprak, vice president of industry trends and insight for TrueCar.com in Santa Monica, California. "Toyota's generous incentives in April continue to bring consumers back into dealerships; however, the impact of its incentive programs in the marketplace appears to have diminished slightly in April."
General Motors Co., which entered bankruptcy on June 1, and emerged in July, may post a 7.2 percent increase when industry sales are announced on May 3, while Dearborn, Michigan-based Ford Motor Co. may report a jump of 28 percent. Chrysler's last double-digit increase was 27 percent in July 2005 when the Auburn Hills, Michigan-based carmaker was part of DaimlerChrysler AG.
Zero-Percent Financing
Asia-based automakers also benefited from incentives. Toyota sales may have risen 34 percent, the average of 5 analysts. The Toyota City, Japan-based automaker extended the no-interest loans and discount leases it offered in April, and competitors followed.
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