BMW recaptured the luxury sales crown from Mercedes-Benz in the U.S. in 2014. Lexus finished a distant third.
If the end of 2014 is any indication, the new year for cars (and trucks) may be best described by The Cars’ 1978 classic song lyric: let the good times roll.
The industry saw sales up in December as an improving economy and low-priced gasoline renewed the country’s love affair with new vehicles – in particular full-size trucks and SUVs – and it’s a trend that’s expected to continue.
Auto sales are expected to surpass 16.5 million units, which is a 6% increase on a year-over-year basis, when all of the counts are in today. Part of the reason is that all of those “feel good” factors were catalyzed into reasons to buy with heavy advertising and tempting incentives by automakers during the holiday season.
“Everything you need to have a great month was in place: Consumers felt good about the direction of the economy, interest rates and fuel prices were low, and our dealers did a great job introducing customers to our incredible range of new and redesigned vehicles,” said Kurt McNeil, U.S. vice president of Sales Operations for General Motors.
Subaru sales eclipsed the 500,000 unit mark in the U.S. in 2014.
And the good times are expected to roll next year as many forecasts call for sales to rise to 17 million units this year, which would be the first time since 2005. The all-time high is 17.3 million units in 2000.
“The industry finished last year on a high note thanks to a strong economic tailwind,” Bill Fay, Toyota Division Group vice president and general manager, said in a statement. “That momentum should continue in 2015 and combined with continued strong replacement demand, boost sales further.”
Toyota Division posted a 12.2% jump in December 2014 sales to 175,178 units, while sales were up 5.1% for the year to 2.06 million units. The maker’s luxury division, Lexus, reported an all-time monthly sales record in December of 39,879, a 14.7% increase. For the year, Lexus sales reached 311,389, up 13.7%.
In a year that saw scores of makers putting up big sales numbers month after month, the battle among luxury automakers took center stage at times. Mercedes-Benz, last year’s champ, and BMW, the previous titleholder, have been slugging it out for supremacy for the past several years. However, Lexus re-entered the fray this year after sitting on the sidelines due to lackluster products.
When the dust settled, BMW regained the title by just over 9,000 units over Mercedes: 339,738 compared to 330,391. BMW was up 9.8% compared with year-ago results, while Mercedes was up 5.7% for the same period. The results marked new records for both brands. Lexus came in a distant third.
The automakers that posted sales increases for the year weren’t any great surprise as General Motors, Fiat Chrysler, Honda, Acura, Nissan, and Lincoln – in addition to the aforementioned BMW, Mercedes, Lexus and Toyota – have been putting up solid numbers all year.
Mazda - the Mazda3 shown here - enjoyed a stellar 2014 with sales up 7.7%: the company's best result since 1994.
However, some other makers turned in impressive report cards this year, such as:
- Mitsubishi – up 24.8%
- Subaru – up 21%
- Audi – up 15.2%
- Kia – up 8.4%
- Mazda – up 7.7%
- Hyundai – up 2%
However, the news was not great for all of the makers as Ford and Volkswagen reported sales drops in 2014. Ford’s drop was predictable as it converted its best-selling vehicle, the F-Series pickup truck, from a steel-bodied model to an aluminum one. The maker predicted it would lose significant sales, and it did. The Dearborn, Michigan-based company reported sales were down 0.6% in 2014.
That said, Ford’s sales cloud had a silver lining: it was the top-selling brand in the U.S. in 2014.
(U.S. automakers close out 2014 on a high note. For more, Click Here.)
Volkswagen’s decline was also easy to see coming, but for a different reason: the maker has been on a steady sales losing streak for nearly two years and 2014 was no different as the company saw sales drop 10% this year.
However, the German maker’s got reason for optimism in 2015 with several new award-winning products set to kick off, the tide could turn.
(Click Here for details on Volvo’s new concept cycling helmet.)
“In 2014 Volkswagen of America enhanced the lineup of German-engineered vehicles with an all-new, award-winning Golf family, a refreshed Jetta and most recently a refined Touareg,” said Mark McNabb, chief operating officer, Volkswagen of America. “As we kick off 2015, we are encouraged that the vehicles have been well received by both the automotive press and our dealers.”
Most automakers not only rejoiced in the fact that sales were up this year, they also celebrated because folks paid more for those new vehicles. TrueCar reports that the average sales price in 2014 hit more than $33,000, up 1.9% from a year ago.
(To see how autos now drive the Consumer Electronics Show, Click Here.)
“December sums up what we’ve seen all year for automakers, and it’s a fitting finish to a comeback year for the industry,” said John Krafcik, president of TrueCar.
“Sales volume growth and the popularity of highly profitable vehicle segments – pickups, utilities and luxury vehicles – has been immensely beneficial to automakers’ revenue and we expect more good news in 2015.”
Kelley Blue Book have increased by $842 (up 2.5%) from December 2013, while rising $556 (1.6%) from last month. This is the highest month on record for average transaction prices.