auto sales

Automakers reported their sales Tuesday. Toyota and Chrysler saw big U.S. sales gains in April, but they came at the expense of General Motors and Ford.

Americans stepped up spending on retail goods in February, evidence that a stronger job market is boosting the economy. Consumers bought more autos, clothes and appliances. They also paid higher prices for gas. Retail sales increased 1.1 percent last month, the Commerce Department said Tuesday. It was the biggest gain since September.

U.S. factories boosted output last month and December ended up being their best month of growth in five years. Strong auto sales and growing business investment in machinery and other equipment are keeping factories busy and helping the economy grow.

U.S. auto sales are off to a strong start this year, continuing the brisk pace from late 2011. Chrysler had its best January in four years while Ford got a boost from small cars and SUVs. Volkswagen, which wants to aggressively expand in the U.S., reported much higher sales. One sour note was GM, where sales fell.

The U.S. economy grew at a 2.8 percent annual rate in the final three months of last year, the fastest growth in 2011. Americans spent more on cars and trucks, and companies restocked their shelves at the strongest pace in nearly two years. But growth in the October-December quarter -- and all of last year -- was held back by the biggest annual government spending cuts in four decades.

Somebody forgot to tell the automakers that the economy is going downhill: Auto sales in September were up 10% over last year's numbers, with all of Detroit's Big Three posting solid gains. Imports, however, did not fare as well. Can Toyota, once unstoppable, win back its former primacy, post-tsunami and accelerator debacle?

Fears that car buyers would stay away from dealerships in August never materialized. Instead, Americans were lured by new models, cheaper financing and the need to replace aging cars, boost August sales by 7.5%.

Toyota (TM) took the spot as the world's No.1 car company in 2009, replacing GM (GM) which held the honor for decades. Now, GM has taken the position back based on its data from the first half and numbers from Toyota and VW. VW actually claimed the second spot and pushed Toyota into third. It has...

Estimates of what will happen to consumer borrowing rates if the government defaults on August 2 are wildly divergent, but some expect that interests on loans could move at least .5% higher. That would certainly hurt the housing market, and could ding the new car market as well.

Gas prices have hit a sweet spot for U.S.-based automakers. They've fallen enough to spur pickup truck sales, yet remain so high that newer small cars are selling as well. That isn't the case for Honda and Toyota, however. They ran short of small cars because of production problems tied to the...