Auto sales uneven in November
VW numbers slightly off as Chattanooga-built Atlas posts best month
November U.S. auto sales were mixed as carmakers saw uneven results, including Volkswagen which posted a slightly lower total despite the Chattanooga-made Atlas surging to its best month. Other automakers with Tennessee assembly plants followed the trend as General Motors sales fell 3 percent in November over the same month a year ago, while Nissan unofficially recorded a 14 percent gain.
Meanwhile, sales at Fiat Chrysler and at Toyota Motor Corp. were off single-digit percentage points. But Honda Motor Co. sales rose 8 percent while Ford Motor Co. jumped 7 percent.
Autotrader and Kelley Blue Book Executive Publisher Karl Brauer said that Volkswagen, off 1.6 percent in November from a year ago, needs to keep plugging away in the aftermath of the diesel emission challenge.
“They were on a great momentum” before the scandal, he said about the company, even though it wasn’t heavy in the popular SUV segment. Brauer said VW is building brand awareness of the Atlas
midsize SUV and there’s room for higher sales volumes.
Atlas November sales hit a new monthly high of 5,154 since it went on sale this past spring.
However, sales of the Passat midsize sedan, also made in Chattanooga, fell 51.2 percent from a year ago to 3,140, the company reported.
Brauer said the sedan segment widely is losing market share as motorists switch to buying SUVs and pickup trucks.
“It’s the new normal for total volume sedan sales,” he said.
Sales of the Chattanooga-made Atlas and Passat vehicles combined last month of 8,294 is lower than the 10,544 Passats only sold in November 2012, figures show.
Still, year to date, VW posted total sales of 309,395 units, up 8.3 percent, according to the German automaker.
Industrywide, auto sales for the year in the U.S. are expected to be off from 2016.
Charlie Chesbrough, senior economist for Cox Automotive, said higher interest rates are challenging vehicle affordability, and the increasing supply of off-lease cars, SUVs and trucks is creating more competition for new sales.
“December will likely be a turbulent month in Washington, D.C.,” he said in a statement. “Fiscal and monetary policies could have a significant impact on vehicle sales in the short term and over the next few years.”
In November, Black Friday promotions — which began early in the month — helped lure buyers to dealerships.
Fiat Chrysler was offering up to $16,000 off its Chrysler 300 sedan, while Hyundai was kicking $3,750 off the price of a Santa Fe SUV.
Automakers were offering an average of $3,700 to $3,800 in incentives per vehicle in November. As prices creep up, deals are creeping up with them, analysts said. The trend will likely continue in 2018, when U.S. sales are expected to drop and automakers will be keen to hold on to their market share.
November sales were buoyed by strong U.S. consumer confidence, which was at its highest level since November 2000, according to the Conference Board.
The Associated Press contributed to this story.
Contact Mike Pare at mpare@timesfreepress.com or 423-757-6318.