Autos: Record 2016 sales cap seven-year climb.
December boosts final tally for 2016
U.S. automakers enjoyed stronger sales than expected in December, suggesting that the auto industry may set an alltime full-year record for vehicle sales.
Heading into December, the industry was teetering on the edge of a new record, after setting the mark at 17.47 million vehicles in 2015.
After early indications of strong results Friday, General Motors projected that industry sales would achieve a record at 17.5 million units in 2016.
That would mark the seventh consecutive fullyear increase following the Great Recession, which nearly wiped out GM and Chrysler.
Average transaction prices hit an all-time high of $35,309 in December, up 1.5% from a year earlier, according to Kelley Blue Book.
After seven straight years of sales gains — a string not seen since the 1920s — U.S. sales have reached a plateau. The National Automobile Dealers Association expects U.S. sales to drop to 17.1 million vehicles in 2017 as interest rates and vehicle prices rise.
General Motors
The Detroit automaker soared past analyst expectations, recording U.S. sales growth of 10% in December, compared with a year earlier. The company sold 319,108 vehicles for the month.
Analysts at Edmunds.com and Kelley Blue Book had projected sales growth of 3.1% and 3.7%, respectively.
GM’s strong December included an increase of more than 3% in sales to retail customers, which are more profitable than sales to fleet clients, such as rental-car companies.
The company’s flagship Chevrolet brand posted an increase of 12.8% to 212,959 vehicles, despite a 13.8% decrease for its most popular vehicle, the Silverado pickup truck. The GMC brand increased 5.8%, Buick rose 2.8% and Cadillac increased 3.2%.
“We finished 2016 with a strong December, reflecting the continued strength of GM’s U.S. retail and commercial businesses,” Kurt McNeil, GM’s vice president of U.S. sales operations, said in a statement. “We begin 2017 well positioned to continue growing our U.S. retail business, driven by all-new products like the Chevrolet Equinox and Traverse being launched into key, growing U.S. market segments.”
Ford Motor Co.
The Dearborn, Mich.based automaker posted a sales gain of 0.3% in December to 239,854 units.
That outpaced Edmunds.com and Kelley Blue Book expectations of 1.6% and 2.4% declines, respectively.
The company said its retail sales rose 5%. Sales of the F-series pickup truck, the nation’s most popular vehicle, increased 2.7% to 87,512 units.
Ford’s namesake brand posted a 0.6% sales decline to 227,063 units. The Lincoln luxury brand continued its hot streak, increasing 17.8% to 12,791.
Low gasoline prices continued to hurt cars and bolster crossovers, sportutility vehicles and pickup trucks. Ford’s overall car sales fell 11.7% to 51,205.
“December marked Ford’s best retail performance since 2004, with average transaction prices increasing $1,600 for the month — $1,000 more than the industry average,” said Mark LaNeve, Ford vice president, U.S. marketing, sales and service. “Thanks to strong customer demand for F-Series, Transit and an allnew lineup of heavy trucks, Ford capped 2016 as America’s best-selling truck brand.”
Fiat Chrysler
Fiat Chrysler’s U.S. sales fell 10% in December, compared with a year earlier, to 192,519 units as the company continued to dramatically reduce its previously heavy reliance on fleet sales.
Although the decline was steep, the performance was better than expected. Analysts at Edmunds.com and Kelley Blue Book had projected sales declines of 12.2% and 11.2%, respectively.
Fiat Chrysler retail sales fell only 2% to 155,987, while fleet sales plunged 34% to 36,532.
Sales of the crucial Jeep brand fell 6.4% to 83,159 vehicles. The brand’s crossovers and SUVs remain hot among retail consumers.
The car-heavy Chrysler, Dodge and Fiat brands continued their contraction, falling 31.7%, 21.4% and 53.6%, respectively.
The Ram brand, however, which features pickups and vans, increased 10.2% to 53,597.
Foreign automakers also flourished in 2016. A strong December helped Mercedes-Benz USA to its best year ever, with 340,237 vehicles sold. Similarly, Nissan Group broke an all-time record with nearly 1.6 million total U.S. sales. Hyundai Motor America recorded its seventh consecutive year of record sales, reaching 775,005 units sold. American Honda Motor Co. Inc. posted an annual sales record of 1.64 million vehicles sold. Toyota Motor Sales USA Inc.’s annual sales dipped 2.0% to 2.45 million, and Mazda North American Operations’ sales fell 6.7% to 297,773 vehicles.