Despite millions of vehicles being recalled already this year, the auto industry appears to have not been hit hard, as evidenced by recent statistics showing SUV sales continue to remain solid.
According to sales reports issued by Ford and Toyota, both companies have seen a surge in sport-utility vehicles (SUV) being purchased.
Ford reports sales in July rose 9.5 percent, while Toyota saw a 12 percent boost, with both companies exceeding analyst estimates on the number of vehicles delivered. The statistics point to what could be the best year for the automakers since 2006.
Ford sold 211,467 SUV-like vehicles as the Escape saw a 19 percent increase for its best July on record. Chrysler saw a 20 percent boost and Jeep also had its best July, with a 41 percent increase. Even GM, which has been the face of the recalls, saw its SUV sales increase nearly 10 percent.
"The crossover SUV segment is just hot, hot, hot," said Michelle Krebs, a senior analyst at AutoTrader.com. "It's driving so much of the sales today."
GM is also optimistic on the sales as delivering solid movement ahead of the fall and the rolling out of new models.
"The U.S. economy left July carrying good momentum," Kurt McNeil, GM U.S. vice president of sales operations, said in a statement. "The economy has bounced back strongly from the harsh winter, consumer confidence has reached a post-recession high, energy prices remain moderate and job growth continues. The stage is set for strong sales through the balance of the year."
But the recalls remain on people's minds. A number of deaths have been reported as a result of the ignition switch default in GM model vehicles. Tech Times has reported that GM is working to solve the problem, but as of now, no concrete solutions have been found. The initial recall came out in late June.
The order "is still in effect for the foreseeable future," GM spokesman Alan Adler said on July 19. GM engineers are "looking at one common solution" for all the recalled Cadillacs, "but they don't have it yet," Adler said.
The controversy surrounding GM has seen CEO Mary Barra face questioning in the U.S. Congress over GM's response to the recalls, which senators say has been inadequate, even going as far as calling for the company's top lawyer to be let go.
Despite the controversies, however, it appears automakers are doing just fine and have not been hit by the recalls, at least not yet.
