Michigan: General Motors Co, Ford Motor Co and other major automakers reported rising vehicles sales in the US in December, capping the best year since 2006 thanks to cheap fuel and low interest rates. GM topped sales estimates while Ford and Honda fell short of predictions.
GM’s 274,483 sales produced a 19 percent gain, compared with analysts’ forecast of 13 percent. Ford sold 219,369 light vehicles, up 1.3 percent, missing analyst forecasts for a 2.8 percent gain. The US unit of Fiat Chrysler Automobiles NV sold 193,261 cars and trucks last month, up 20 percent for December and giving full-year sales a 16 percent boost on its way to gaining the most market share. Analysts had estimated a jump of 23 percent last month. The market’s shift to light trucks, which outsold cars every month of the year for the first time since 2004, played to GM’s and Fiat Chrysler’s strengths, such as their sport-utility vehicles and large pickups. Ford’s sales gains were tempered by lower production for its top-selling F-Series pickup. The F-150 truck was redesigned with an all-aluminum body. “Our best December sales in a decade pushed our full-year sales over the 2 million unit threshold for our best annual sales since 2006,” said Reid Bigland, head of US sales for the Auburn Hills, Michigan-based unit.
All automakers were projected to report sales increases in December as the strengthening job market, available credit and the lowest gasoline prices in more than five years bolstered consumer confidence. Deliveries are projected to rise again this year for an unprecedented sixth straight year, albeit at a slowing pace, as volumes return to pre-recession levels.
The annualised selling rate, adjusted for seasonal trends, may have been 17.3 million, including medium and heavy trucks that typically account for at least 200,000 sales annually, said the former Chrysler Group, which now calls itself FCA US. The average of 13 estimates was for a light-vehicle selling rate of 16.9 million, down slightly from November’s 17.2 million, but still the third-fastest pace of the year. Dealers last month may have sold 1.5 million cars and light trucks, the average of seven analysts’ estimates, which would bring the full-year total to 16.5 million and cap a 58 percent increase since 2009, when General Motors Corp and Chrysler LLC restructured in bankruptcy. Light-vehicle sales in the US averaged 16.8 million from 2000 to 2007. The record, set in 2000, was 17.4 million.
Chrysler brand sales rose 53 percent, led by the new 200 family sedan, which nearly tripled deliveries, to 16,229. It was the brand’s best December in seven years.
Jeep sales jumped 19 percent to 63,274, powered by the Cherokee, Grand Cherokee and the Wrangler. Ram pickups soared 32 percent to 44,222. For the year, Ram pickup sales jumped 24 percent to 439,789. FCA US now reported rising sales for 57 consecutive months under Chief Executive Officer Sergio Marchionne, and dealers are feeling good.
Nissan and Infiniti brands combined to sell 117,318 models last month for a 6.9 percent gain that topped the average estimate for a 6 percent rise. Full-year sales rose 11 percent to 1.39 million, led by a 12 percent increase in deliveries for the namesake brand.
Honda sales rose 1.5 percent, less than the 6.3 percent increase predicted by analysts. Honda finished the year with 1.54 million vehicle sales, a 1 percent increase.
After FCA US, the biggest estimated increases for the month were 14 percent for Toyota Motor Corp and 13 percent for GM. Ford, which offered dealers special bonuses for meeting sales targets on its cars and Escape compact sport-utility vehicles, may report a 2.8 percent increase in December light-vehicle sales.
Hyundai Motor and Kia Motors were projected to report a combined 6.7 percent sales gain for December, while Volkswagen AG’s VW and Audi brands were predicted to report a 6.1 percent increase. Bloomberg
