Automakers boasted strong performances in December amid strong incentives and firm demand for trucks. Forecasts published by
Edmunds.com suggest total vehicle sales in the United States are expected to come in at a seasonally-adjusted annual rate of
17.7 million units in December, a 18.5 percent increase from November, although a 0.5 percent drop from the year-ago period.
The year 2016 had one fewer selling day than 2015. Quoting estimates by J.D. Power, the Wall Street Journal said December light
vehicle sales may have dropped 2.2 percent, although rising 1.4 percent on a selling-days adjusted basis.
Coming Off A Strong November
These figures come on top of a strong November, when all major
automakers, with the exception of Fiat Chrysler Automobiles NV (NYSE: FCAU), reported year-over-year sales growth.
The Big 3
General Motors Company (NYSE: GM) said it
sold 319,108 vehicles in December, up 10 percent year-over-year. The performance was made possible due to strong retail sales gains
at Chevrolet, according to the company. Retail sales, which refer to sales made to individual customers, rose 3 percent to 249,983
vehicles.
The company said its total U.S. market share rose 1.5 points to 18.8 percent. For 2016, the company's retail sales rose 2
percent.
Ford Motor Company (NYSE: F) saw its U.S.
sales rise 0.3 percent to 239,854 vehicles, with retail sales rising 5 percent. Even as Ford brand sales fell 0.6 percent, Lincoln
luxury brand sales rose 17.8 percent. For 2016, the company sold 2,614,697 vehicles, marking its best performance in 10 years.
Meanwhile, Fiat Chrysler reported a 10 percent decline in U.S. sales to 192,519 vehicles. The company's fleet sales and retail
sales were down 3.4 percent and 2 percent, respectively. The sales numbers for the whole of 2016 showed nearly flat performance for
the year.
Foreign Automakers, Too, Make Hay
Toyota Motor Corp (ADR) (NYSE: TM) said it
sold 243,229 vehicles in December, a 2 percent year-over-year growth. The Toyota division posted sales gains of 2.6 percent on
volume basis and 6.4 percent on daily sales rate basis. Lexus sales fell 0.5 percent on a volume basis but rose 3.2 percent on a
DSR basis.
For the year, the Japanese automaker's sales fell 2 percent to 2,449,630 vehicles.
Nissan Motor Co Ltd (ADR) (OTC: NSANY)'s
total December sales rose 9.7 percent, with Nissan division sales rising 8.3 percent and Infiniti sales climbing 20.6 percent. The
company reported a 5.4 percent in sales for the calendar year 2016.
Honda Motor Co Ltd (ADR) (NYSE: HMC) said
its December sales rose 6.4 percent to 160,477, with a 21.8 percent jump in truck sale offsetting a 0.4 percent drop in car
sales.
Honda car and truck sales rose 0.2 percent and 23.4 percent, respectively, and Acura truck sales climbed 12.9 percent. Acura car
sales fell 8.6 percent.
For the year, sales increased 3.2 percent.
Trump Spooks Automakers
Meanwhile, Ford announced
its pulling the plug on a proposed car factory in Mexico is seen as a corollary of the stance of President-elect Donald Trump. Ford
had announced in April 2016 its plan to build the factory in San Luis Potosi, Mexico, at an estimated cost of $1.6 billion.
Instead, Ford said it would invest $700 million to expand its Flat Rock, Michigan, factory, which would make new electric, hybrid
and autonomous vehicles.
General Motors was also on the receiving end of Trump's twitter rants, with the president-elect threatening that the company may have to
pay a big
border tax on the Chevy Cruze models made in Mexico. General Motors countered by the argument that the Mexican-made vehicles do
not come into the United States but were used to serve its global customers.
Even as December numbers continue to pour in, analysts believe 2017 could be another record year of sales. However, the sales
pace could slow in the coming months amid Trump's proposed protectionists policies and as companies wean buyers away from heavy
incentives.
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