Compact-car production on the rise

August 31, 2011|Associated Press

Cost-conscious consumers are buying more small automobiles. Above, GMs… (Paul Sancya/Associated…)

DETROIT - Automakers are gearing up to make more compact cars - another bet on a market that has thrived even as consumers fret about the economy.

General Motors is adding Saturday shifts in the fourth quarter at an Ohio factory that makes the compact Cruze, two people briefed on the matter said. Ford, Toyota, and Hyundai have scheduled overtime at compact-car plants.

The car makers are expecting sales of compacts to increase as nervous consumers go for lower sticker prices and better gas mileage. And other car companies are trying to steal sales from Honda and Toyota, whose factories are recovering from parts shortages due to the March earthquake in Japan.

Automakers sold nearly 1 million compacts through the end of July. That’s up 12.8 percent from a year earlier, an impressive gain considering the scarcity of the most popular compact models, the Toyota Corolla and Honda Civic. Civic sales are down 9.7 percent and Corolla sales are off 8.1 percent, according to Autodata Corp.

Cruze sales are up 74 percent over the car it replaced, the Chevrolet Cobalt. Elantra sales have risen 56 percent, and Nissan Sentra sales are up 33 percent. In June the Cruze, which GM introduced last year, was the top-selling car in the country.

At current sales rates, GM dealers have only enough Cruzes on their lots to last for 27 days, far lower than the 60 days considered optimal.