Car buyers demand fuel efficiency
As gas prices climb, automakers are scrambling to produce vehicles that won't give you much pain at the pump.
Shoppers turned their focus to smaller and more fuel-efficient vehicles, hoping to get some relief at the pump.
General Motors (GM) has 12 vehicles that do at least 30 mpg on the highway, and each of those was a sales winner in March. Combined, those 12 models contributed to 100,000 in sales for the month -- a record for GM.
Post continues below.
Three years ago, only 16% of GM's sales were at that threshold of at least 30 mpg. Now, the company said, it's 40%. Those fuel-efficient vehicles include the latest versions of the Chevy Cruze, Chevy Malibu, Buick Verano and Chevrolet Sonic.
GM and the other major automakers will release their March sales totals Tuesday. Analysts are expecting sales strong enough to give the industry the best quarter in four years.
Reuters reports that 34 analysts surveyed think March sales will reach an annualized rate of 14.75 million vehicles. That's a huge improvement from the last few years, when the spiraling economy led many drivers to put off new-car purchases. The annualized rate was only 13.3 million a year ago, and auto sales dropped to 10.4 million in 2009.
"Vehicle trade-in rates have achieved sustained highs in recent months, which suggests that consumers have decided that they've held on to their cars for too long," Jessica Caldwell, an analyst with car site Edmunds.com, told Reuters.
Automakers are also more accepting of buyers who might not have the best credit. Caldwell said the average credit score for buyers is at its lowest level since the first half of 2008.
Shares of GM rose more than 3% Monday morning to $26.50.
More from Top Stocks
| Tags: | FgmKim PetersonTM |
MORE ON MSN MONEY
DATA PROVIDERS
Copyright © 2013 Microsoft. All rights reserved.
Quotes are real-time for NASDAQ, NYSE and AMEX. See delay times for other exchanges.
Fundamental company data and historical chart data provided by Thomson Reuters (click for restrictions). Real-time quotes provided by BATS Exchange. Real-time index quotes and delayed quotes supplied by Interactive Data Real-Time Services. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by SIX Financial Information.
Japanese stock price data provided by Nomura Research Institute Ltd.; quotes delayed 20 minutes. Canadian fund data provided by CANNEX Financial Exchanges Ltd.
LATEST POSTS
The Dow jumps 109 points after rising as many as 191. Oil-price jitters and rising rates trim gains. Those factors and the Fed may weigh on markets Tuesday.
FIDELITY VIEWPOINTS
- How to sell covered calls - Fidelity Investments
- Savvy year-end tax moves to consider now - Fidelity Investments
- Seven ways to prepare for tax changes
- Five reasons an annual review is crucial - Fidelity Investments
- Take a look at mid caps now - Fidelity Investments
- State of the sector: Health care - Fidelity Investments
VIDEO ON MSN MONEY
ABOUT
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.

