US Auto Sales Slow in December, But Still On Track for Best Year in Six

Strategic Insights -

US auto sales saw a minor slowdown in December compared to the brisk pace earlier in the year, but major automakers are still expected to finish 2013 with the best numbers in six years. Nissan recorded an 11 percent gain in December, while Chrysler managed a 6 percent increase. However, General Motors, Toyota, Ford, and Volkswagen each posted disappointing numbers. Despite this, most major automakers reported at least a 7 percent increase for 2013, with analysts predicting full-year sales to be up around 8 percent to 15.6 million.

Key Takeaways:

  • Nissan posted an 11 percent gain in December, while Chrysler managed a 6 percent increase.
  • General Motors, Toyota, Ford, and Volkswagen each posted disappointing numbers in December.
  • Most major automakers reported at least a 7 percent increase for 2013, with analysts expecting full-year sales to be up around 8 percent to 15.6 million.
  • Analysts predict that auto sales will grow at a slower rate in 2014, potentially as low as 400,000 vehicles.
  • Discounts rose in December, and there were signs that automakers were beginning to lower prices to match competitors.
  • The average age of a vehicle on US roads is a record 11.4 years, according to the Polk research firm.
  • Ford led all major automakers in full-year sales, with an 11 percent gain to almost 2.5 million vehicles.
  • Chrysler sales were up 9 percent to 1.8 million cars and trucks, and Nissan also posted a 9 percent gain to nearly 1.25 million vehicles.

Statistics:

  • US auto sales slowed in December, but still on track for best year in six: 15.6 million (predicted full-year sales)
  • Nissan: 11 percent gain in December
  • Chrysler: 6 percent gain in December
  • General Motors: sales down 6.1 percent in December, with Chevrolet Silverado pickup sales falling 16 percent
  • Toyota: sales down 1.7 percent from a year ago
  • Ford: sales up only 1.8 percent for the month
  • Volkswagen: sales fell 23 percent in December
  • Ford: 11 percent gain in full-year sales to almost 2.5 million vehicles
  • Chrysler: 9 percent gain in full-year sales to 1.8 million cars and trucks
  • Nissan: 9 percent gain in full-year sales to nearly 1.25 million vehicles
  • Average age of a vehicle on US roads: 11.4 years (record)
  • Year-over-year growth in auto sales: over 1 million vehicles per year since 2009
  • Predicted growth in auto sales for 2014: potentially as low as 400,000 vehicles

Sources:

  • U.S Government news release
  • Bill Fay, Toyota division group vice president
  • Larry Dominique, president of Automotive Lease Guide
  • Polk research firm