Sales look ‘well-positioned’ to hit near-record levels
• General Motors led the six top- selling automakers by U.S. sales in beating analysts’ projections for deliveries in December, likely solidifying an unprecedented seventh straight year of sales growth for the industry.
GM, the largest U. S. automaker, said deliveries rose 10 per cent, beating analysts’ estimates for an increase of about 4.4 per cent. Ford, Fiat Chrysler Automobiles and Japan’s three largest carmakers all posted surprise gains.
Coming into Wednesday’s reports, analysts predicted GM would s t and al one among the six biggest sellers in the U. S. with higher deliveries for December, which had one less selling day than in the year- earlier month. With industry- wide deliveries gaining for the month, the full-year total will top the 2015 record of 17.5 million.
“Key economic i ndica- tors, especially consumer confidence, continue to reflect optimism about the U. S. economy and strong customer demand continues to drive a very healthy U. S. auto industry,” said Mustafa Mohatarem, GM’s chief economist. “We believe the U. S. auto industry remains well- positioned for sales to continue at or near record levels in 2017.”
Analysts on average had projected December sales will come in at a seasonally adjusted annualized rate of 17.6 million cars and light trucks, up from last December’s 17.5 million rate. On Wednesday, GM predicted that when reports are complete, the industry selling rate will hit 18.2 million for December and 17.5 million or the full year.
Fiat Chrysler was the lone major automaker to report a sales decline for the month, with deliveries falling 10 per cent — still better than a projected decline of 14 per cent. Toyota Motor, Nissan and Honda each posted gains.
Among highlights of Wednesday’s reports: ❚ GM reported sales grains across all four of its brands, led by Chevrolet, driven by demand for Equinox sport utility vehicles and Malibu sedans. ❚ Ford’s F- Series pickup line had its best month in 11 years, with 87,512 trucks sold. Toyota reported i ts best month and year for light truck sales, paced by records on both fronts for the RAV4 and Highlander SUV models. ❚ Nissan’s Rogue crossover displaced the Altima sedan as its top- seller for the first time.
Automakers’ biggest promotions were split into two polar- opposite group, said Michelle Krebs, senior analyst with Cox Automotive: slow- selling fuel- efficient models and high-margin big trucks.
“We’ve been saying it would be neck and neck for a record sales year,” Krebs said.
“There is underlying strength to the economy but we also saw sales incentives climbing throughout the year.”