SOLD! CARS FLEW OFF THE LOTS IN NOVEMBER

Auto industry has fingers crossed it can break sales record

Buoyed by renewed economic confidence following the presidential election, Americans snapped up new vehicles at a rapid pace in November, giving the U. S. auto industry a chance of breaking its all- time record for full- year sales.

With stocks hitting record highs following Donald Trump’s victory, easy credit, strong employment and a solid housing market, vehicle shoppers had little reason to hesitate in the showroom.

General Motors and Ford Motor outperformed expectations, inspiring investors who have otherwise had a relatively ho- hum attitude toward their shares in recent years.

Foreign automakers also produced solid gains for the month, with German automaker Volkswagen Group’s flagship brand even breaking a monthly sales losing streak that started with its emissions scandal in fall 2015.

“After one of the most contentious elections in the U. S., certainly in my lifetime, the question was what effect may that have on consumer confidence?” said Bob Carter, senior vice president of automotive operations for Toyota in the U. S.

“Well, from my perspective, when you look at the strength of November — particularly what took place for us, and I assume the entire industry over the Thanksgiving holiday — consumer confidence is just fine.”

With one month to go, the industry has a decent chance to match or exceed its 2015 full- year record of 17.47 million vehicles sold.

In November, U. S. auto sales rose 3.7% compared with a year ago, according to Autodata. On an annualized basis, that equaled a rate of 17.87 million units. November sales growth projections had ranged from 2.7% at Edmunds. com to 4.2% at Kelley Blue Book.

Another contributing factor to the solid month was the Thanksgiving weekend, which is having an increasing effect on the month’s output.

“Black Friday has become one of the cornerstone selling events in automotive now,” Ford U. S. sales chief Mark LaNeve said.

Discounts as a share of vehicle price rose 13% over a year earlier, according to TrueCar. Incentives now average $ 3,475 per vehicle industrywide. That will cut into profits as automakers jockey for market share. But on the whole, November was still quite lucrative for the industry.

GM’s overall sales rose 10.2%. That included an 8% gain in retail units, which are more profitable than sales to fleet customers.

The automaker’s four U. S. brands recorded increases, with Chevrolet up 8.1%, GMC up 14.1%, Cadillac up 14.5% and Buick up 16.1%.

Ford Motor had a similarly strong month, with sales increasing 5.1%. That included a 10% increase in retail sales, bolstering the bottom line. The luxury Lincoln brand continued its hot streak, rising 19.1%. Ford shares rose 3.9% to close at $ 12.43.

On the domestic front, the laggard was Fiat Chrysler. The company’s sales fell 14.3%.