GM Sales Soar 11.5%

In another sign the US economy is starting to turn around (though like a cruise ship, slowly,) car maker General Motors, which was on the brink of bankruptcy this time last year, is reporting that domestic sales were up 11.5 percent in February, reports the New York Times.

Even better? Sales among the four brands GM is betting its future on — Buick, Cadillac, Chevrolet and GMC — saw a 32.2 percent increase. (We told you in December that GM is phasing out its Saturn and Pontiac brands.)

The news is especially bright given that many would-be car buyers were snowed in last month by heavy winter storms along the East Coast and in the Midwest.

Of course, there's no question Toyota's troubles contributed to GM's gains. The Japanese car maker recalled more than eight million vehicles in February (six million of which were in the US) due to problems with the accelerator in some cases and the brake pedal in others. The company had to temporarily halt production on eight models including the top-selling sedans Camry and Corolla to resolve the problems.

American car makers, including GM, seized the opportunity to win over some Toyota customers, says the Times. GM, Ford and Chrysler each offered discounts of up to $1,000 to customers trading in a Toyota for one of their vehicles. And even though Toyota's mechanical troubles have been resolved, the car maker is facing questions about how it handled the recalls, further turning off potential customers, many of whom were sold on the brand's reputation for safety.

GM's good sales news comes on the heels of a recall of its own issued yesterday related to issues with a motor in the power-steering systems in some of its compact cars. The National Highway Traffic Safety Administration says it has received more than 1,100 complaints, including reports of 14 crashes and one injury. GM recalled 1.3 million compact cars (2005-10 Chevrolet Cobals and 2007-10 Pontiac G5s) yesterday, but the problem, so far, is no where near the scope of the Toyota recalls.

Could today's GM sales news be a sign that things are turning around for American car makers? Stay turned. Ford will be reporting February sales figures later today.

Photo by SteelCityHobbies via Wikimedia Commons.