Counting retail sales alone, Toyota was America's number one brand in 2009. The Asian maker hopes to keep that momentum going with products like the newly-remade Sienna minivan.
Sales of new cars and trucks weren’t exactly booming during December but the adjusted annual sales rate was still strong enough to suggest that sales finally bottomed out as the U.S. auto industry wrapped up its worst year in nearly four decades.
Carmakers pegged the estimated sales rate at 11.4 million units, which is still well below the sales levels that prevailed before the recession gripped the industry in 2008, but substantially better than what the industry suffered through for most of the past year.
For all of 2009, sales totaled approximately 10.4 million units, which was only slightly better than the expectation in early 2009 when carmakers were talking about sales in the sub-10 million-unit range – and may reflect the brief, mid-year boost the market got from the so-called Cash for Clunkers program.
Overall, Ford Motor Co, Toyota, Honda, Nissan, Volkswagen, Mercedes-Benz, BMW, Hyundai, Kia, Subaru and Mitsubishi all reported sales increases during December. Both Hyundai and Kia reported 40% plus sales gains while Ford increased sales by 33%, thanks to a tactical decision to increase fleet sales.
Hyundai, Kia and Subaru also reported finishing the year with sales increases for the full year – the only makers to do so.
Despite the general optimism, however, both GM and Chrysler report their sales dropped below the level reported a year ago when both companies were desperately seeking federal aid.
GM’s total sales were off 6%, while Chrysler’s decline 4%. Overall, Chrysler sold only 931,402 vehicles last year, its smallest total in more than 40 years.
Fred Diaz, Chrysler’s top sales executive, insisted the sales in December held promise. “As we kick off the new year, Chrysler Group continues to build momentum with some of the best products in the marketplace, and we are enthusiastic about the new products coming this year,” Diaz optimistically said.
Meanwhile, Toyota reported selling more vehicles at retail in 2009 than any other manufacturer, beating GM, Ford and Chrysler for the first time.
General Motors, however, was the top seller with 20% market share when fleet sales were placed into the mix. Given the turmoil around the company, which went through bankruptcy and dumped four of its brands, GM actually held up relatively well, insisted Mike DiGiovanni, the automaker’s general director of market analysis.
Susan Docherty, GM’s vice president of sales and marketing, also noted GM finished 2009 with relatively low inventories, less than 400,000 units on dealer lots. In addition, both Pontiac and Saturn, two of the brands GM is closing, have reduced their inventories to fewer than 1,500 vehicles. “We’re 10 months ahead of schedule in selling off these vehicles,” Docherty said.
GM expects to boost it production of cars and trucks by 75% in the first quarter and the chances of a double dip recession appear increasingly remote, the two executives contended.
Ken Czubay, Ford vice president, U.S. Marketing Sales and Service, said the automaker ended the year on a strong note. “Ford’s plan is working,” Czubay said, adding that, “Customer consideration continues to grow for our high-quality, fuel-efficient vehicles. In 2010, we will introduce an even higher number of new products, giving customers more reasons to ‘Drive One,’” a reference to the maker’s latest ad tagline.
Ford sales analyst George Pipas also said the sale numbers for December contained signs that the economy was beginning to recover. Commercial fleet sales were strong and demand for daily rental vehicles improved, he said. “We’re seeing early signs of the economic recovery. I think these are very early positive signs,” Pipas said.
Dealers and carmakers also stepped up advertising in December. “It suggests a significant sector of the economy is becoming more optimistic,” said Pipas, adding that post-Christmas sales were very strong.
“Emerging from the roller coaster of 2009, the industry has gained positive momentum for a gradual recovery,” echoed Don Esmond, senior vice president of automotive operations, Toyota Motor Sales, U.S.A. “Despite a tough market, TMS performed solidly, reaching its goal to grow market share. With Toyota continuing as the best-selling overall brand and Lexus as the best-selling luxury brand in America, we’re looking forward to a bright 2010,” Esmond said.
“The industry is coming out of a very tough year; it’s good to see 2009 behind us,” said Brian Carolin, senior vice president, Sales and Marketing, Nissan North America. “Looking ahead, we’re encouraged by some signs of economic improvement. Showroom traffic is building and consumer confidence is rising.”
GM’s DiGiovanni said there is still a lot of uncertainty about the economy. The winding down of economic stimulus programs during the second half of the year and a potential surge of oil prices, combined with tepid consumer confidence all spell uncertainty, he warned.