GM, Fiat Chrysler Reach High Gear in Two-Month Sales

U.S. auto makers report the best two months of sales in the last 15 years. GM registers a 16% sales increase.
By Amelia Martyn-Hemphill ,

U.S. car sales shifted up another gear as auto makers reported the best two months of sales in the last 15 years. Trucks and SUVs continued to drive profits as customers took advantage of cheap gas prices and low interest rates.

Fiat Chrysler (FCAU) - Get Report and General Motors (GM) - Get Report topped analyst estimates with annual selling rates of over 18 million vehicles while Ford (F) - Get Report and Honda (HMC) - Get Report fell slightly short of expectations.

GM led the way with a 16% sales jump, beating Wall Street estimates. Even the company's worst performing brand, Cadillac, posted gains for the month.

Fiat Chrysler saw its sales rise 15%, thanks to strong sales from its Jeep brand, which sold 195,545 vehicles through October.

Overall light vehicles also fared well, beating estimates across the industry.

Analysts are now predicting that U.S. auto sales will be up 12% year over year. They are expecting sales of roughly 1.43 million vehicles for 2015. The numbers provide a robust looking economic picture for the Federal Reserve as it looks to raise interest rates in the coming months.

Following its emissions scandal Volkswagen was the only major automaker that didn't report October sales increases but posted numbers in line with its 2014 results.

The German manufacturer may soon have to take responsibility for another 800 thousand vehicles potentially affected by the emissions cheating technology, according to the latest reports.

The latest numbers to be added to the mounting controversy could cost the battered company a further $2 billion to rectify. The controversy has wiped out almost a third of Volkswagen's stock value this year, costing the company around $7.4 billion last quarter to cover initial costs relating the to the issue.

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