I think this vehicle gives VW a new face. They can't get it into showrooms quickly enough.
Some automakers reported Monday that sport utility vehicles and trucks helped push their March sales higher, as the Chattanooga-made Volkswagen Atlas SUV is readied to hit dealer lots next month.
General Motors reported a 2 percent increase in sales in March to just more than 256,000 vehicles, with sales of its Tahoe and Suburban SUV models seeing their best sales month since 2008.
Nissan trucks, SUVs and crossovers were up 26 percent and had hit record highs, especially its high-selling Rogue crossover.
At Volkswagen of America, March sales were 3 percent higher over a year ago on the strength of its Chattanooga-made Passat, as well as its Golf models. Sales of VW's Tiguan SUV were down 7.1 percent, but its sales were compared to a record March for the vehicle a year ago.
For the first quarter, VW's U.S. sales were 10 percent higher to 76,290 units, with the Tiguan up by that same figure over the period.
Michael Harley, an analyst for Kelley Blue Book, said SUVs are what people are buying in the market, and the VW Atlas should have been built a decade ago.
Harley expects that VW will spend heavily in marketing the midsize Atlas SUV, which is the largest vehicle the German automaker has ever produced in America.
"It's nice," he said. "It has a great cavernous interior. The quality of materials is good. I think this vehicle gives VW a new face. They can't get it into showrooms quickly enough."
Jennifer Clayton, Volkswagen of America's director of media and advertising, said the Atlas is "critical to our success."
"We haven't had vehicles in this category," she said.
Clayton said the Atlas will be joined with a redesigned larger Tiguan and VW's existing Touareg to give the automaker its new SUV lineup.
America's love affair with SUVs and trucks continued in March. But that's being offset by falling car sales, pushing overall sales for Honda and Ford down compared with last year.
Sales for the month fell 1.6 percent to just over 1.55 million vehicles, surprising analysts who expected a small increase. Analysts were expecting a 2 percent to 3 percent increase for the industry overall in March.
For now, the auto industry isn't worried because it's making solid money selling reams of SUVs and trucks to consumers who are loading them up with expensive features. But some analysts see the large inventories of cars as a looming problem.
Toyota, Ford, Fiat Chrysler and Honda each reported sales declines for March, all due to tumbling car sales.
Ford suffered the biggest loss with a 7.5 percent drop, followed by Fiat Chrysler at 5 percent, Toyota at 2 percent and Honda at just under 1 percent. Nissan sales were up more than 3 percent.
Analysts see some warning signs in the figures and some cautioned that sales could slow later this year.
The Associated Press contributed to this report.
Contact Mike Pare at mpare@timesfreepress.com or 423-757-6318.