Auto Industry Beats Sales Forecasts in December

Strategic Insights -

As the 1998 car and light-truck sales come to a close, DaimlerChrysler A.G. and the Ford Motor Company have surpassed analysts' predictions with a strong finish, driven by robust demand for trucks and deep discounts.

Key Takeaways:

  • DaimlerChrysler's Chrysler car and light-truck sales rose 6.9 percent, outpacing the forecast of 5 percent growth, marking the second-best sales year for the company.
  • Ford's domestic car and light-truck sales increased 6.1 percent, beating the predicted 0.6 percent rise, with total sales reaching 323,417 units.
  • The momentum was fueled by strong demand for trucks, gains in consumer purchasing power, and a year-end flurry of price discounts.
  • DaimlerChrysler's Mercedes-Benz sales in the United States rose 7.9 percent in December, to 15,788, a record for the month.
  • Ford's car sales rose 1.5 percent, to 115,607, while sales of minivans, sport utility vehicles, and pickup trucks increased 11 percent.
  • Chrysler's car sales slipped 1.7 percent, to 51,732, but pickups, minivans, and sport utility vehicles saw a 10 percent rise to 151,593 units.

Statistics:

  • 15.5 million car and light-truck sales for 1998, the second-best sales year in the United States after 1986's 16.05 million.
  • DaimlerChrysler's Chrysler car and light-truck sales rose 6.9 percent, outpacing the forecast.
  • Ford's domestic car and light-truck sales increased 6.1 percent.
  • 323,417 total sales for Ford in December.
  • 15,788 Mercedes-Benz sales in December, a 7.9 percent increase.
  • 151,593 units of pickups, minivans, and sport utility vehicles sold by DaimlerChrysler, a 10 percent rise.

Sources:

  • "DaimlerChrysler A.G. and the Ford Motor Company beat analysts' December sales forecasts, benefiting from strong truck demand and heavy discounts as the auto industry's second-best United States sales year drew to a close." - Bloomberg (not specified)
  • DaimlerChrysler Press Release, December 1998 (date unknown)
  • Ford Motor Company Press Release, December 1998 (date unknown)