CR-V helps Honda reach 1.6M sales

For the third year in a row, Honda has set a U.S. sales record, while the auto industry as a whole reported sales that were down slightly from last year’s record showing.

Honda, which has a major manufacturing presence in central Ohio, eked out a 0.2 percent increase for the year, selling 1,641,429 units, which was up 3,487 units from the prior year.

Analysts say they expect industry sales to dip slightly in 2018. One challenge for automakers is that a large number of leased vehicles are scheduled to be returned,

which will lead to a large supply of high-quality used cars that will compete for customers who might otherwise buy new.

Even if there is a small decrease, that would still be a strong showing, said Charlie Chesbrough, senior economist for Cox Automotive, a company that includes AutoTrader and Kelley Blue Book, among others.

“It’s just a strong soup for robust vehicle sales,” he said, citing strong consumer confidence and other positive indicators. “Consumers are really seeing optimism rise.”

Interest rates are likely to increase but still will be on the low side, he said.

Honda’s top-selling model for 2017 was the CR-V, which is made in East Liberty, Ohio, and other locations. Its sales, which totaled 77,895 units, were up 6 percent.

Meanwhile, sales of the Accord, made in Marysville, Ohio, totaled 322,655, down 7 percent.

Sales of the luxury Acura brand, whose totals are part of Honda’s overall sales, came to154,602 units, down 4 percent.

“2017 was a terrific year for the Honda brand with the continued fortification of our light truck and passenger car lineups, and a new generation of electrified vehicles combining to reach a record number of new customers for a fourth consecutive year,” said Henio Arcangeli Jr., general manager of Honda sales, in a statement.

Nissan was among the other automakers that posted a U.S. record, with 1,593,464 units sold, up 2 percent.

Ford, General Motors and Toyota each posted small decreases for the year, with none of them off more than 1.3 percent. Fiat Chrysler was worse off, with a drop of 8 percent.

The industry as a whole was down 2 percent, with sales of 17.2 million units. It was the fourth-best year on record, after 2000, 2015 and 2016.

Ford’s F-Series pickup truck remained the best-selling vehicle in the U.S. in 2017, a title it has now held for 36 years. Ford sold 896,764 F-Series trucks in the U.S. last year, or nearly two trucks every minute, partly because of post-hurricane demand in Texas and Florida.

Low gas prices and other factors had buyers ditching cars for SUVs at a fast clip. Sales of the Nissan Rogue SUV jumped 22 percent to more than 400,000.

New-vehicle prices hit a record last year, averaging $36,113 as buyers bought bigger SUVs and added more safety and infotainment features, Kelley Blue Book said. At the same time, automakers piled on deals in order to juice sales and hang on to their market share. Automakers spent an average of $4,302 per vehicle in incentives last month, passing the previous record set in November, according to the consulting firm J.D. Power.

No one was expecting U.S. auto sales in December to top December 2016, which was the best single month in 15 years. Sales dropped 5 percent to 1.6 million last month. Ford’s sales were up 1 percent in December as its new large SUVs hit the market, and Hyundai’s sales rose 2 percent. But most other automakers saw declines, including Honda, which was down 7 percent for the month.