Auto sales dip, but market still revving
DETROIT — The U.S. auto industry’s historic growth streak has ended, but demand for new vehicles — especially SUVs — remains healthy as the new year begins.
U.S. auto sales fell 2 percent to 17.2 million in 2017, according to Autodata Corp. It was their first year-over-year decline since 2009, ending an unprecedented seven-year expansion.
General Motors, Toyota and Ford all reported a 1 percent declines in sales last year compared with 2016. Fiat Chrysler’s sales fell 8 percent. Honda’s sales were flat, while Nissan’s rose 2 percent. Volkswagen brand sales rose 5 percent.
While sales fell short of 2016’s record of 17.55 million, 2017 was still the fourth-best sales year in U.S. history, after 2000, 2015 and 2016, according to Kelley Blue Book.
“It’s still a buoyant industry, and the underlying factors that drive it are still very positive,” said Mark LaNeve, Ford Motor Co.’s U.S. sales chief.
Analysts think sales will fall a bit further this year. While low unemployment and rising consumer confidence are expected to boost demand, rising interest rates could make it more expensive for people to finance new vehicles.
Vehicles also are becoming more durable so consumers can keep them longer, further putting a drag on sales. The average age of vehicles on the road has climbed to 11.6 years, up from 8.8 years in 1998.