The Chevy Silverado enjoyed its best December sales since 2005. GM reported an increase of 19% overall.
With General Motors and FCA US, the former Chrysler Group, setting the pace, sales of new vehicles surpassed expectations in December and provided the entire automotive business with a fresh boost as it entered the new year and with consumer confidence on the upswing, looking forward to year of strong sales.
“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.
Honda, Acura, Nissan and Ford also reported sales increases in December, which saw a major advertising by several brands and a drop in fuel prices combine to help spur traffic into the nation’s showrooms.
The rising tide lifted everyone’s sales, including Mazda’s, which saw its December sales increase 8%. Perhaps more impressively, Mazda posted 7.7% jump for the full year: its best sales figures since 1994.
Fiat Chrysler reported a 20% increase in U.S. sales compared with sales in December 2013 (161,007 units), and the group’s best December sales since 2004. The Chrysler (53%), Jeep (35%), Ram Truck (19%) and Fiat (1%) brands each posted year-over-year sales gains in December compared with the same month a year ago. Only the company’s Dodge brand (2.5%) saw a drop.
FCA's Chrysler unit enjoyed a 53% sales jump last month, led by the 200, which was up 187%.
“Our best December sales in a decade pushed our full-year sales over the 2-million unit threshold for our best annual sales since 2006,” said Reid Bigland, head of U.S. Sales. “Last year marked our fifth consecutive year of annual sales growth in the U.S., and once again, we were the fastest-growing automaker in the country.”
GM dealers in the United States delivered 274,483 vehicles last month for the company’s best December sales in seven years. Total sales were up 19% compared to a year ago.
“Chevrolet was strong in every segment of the market, from pickups and SUVs to cars and crossovers. Buick and GMC also had strong sales across the board, and our growth far outpaced the industry average,” McNeil said.
Ford Motor’s U.S. sales totaled 220,671 vehicles in December, up 1% from a year ago and the company’s best December sales since 2005.
“Fusion and Escape posted record years, and our newest products – including Mustang and Transit and Lincolns – are attracting strong customer demand,” said John Felice, Ford vice president, U.S. Marketing, Sales and Service. “Demand for the all-new F-150 also is very high, and it now is the fastest-turning vehicle in Ford showrooms, averaging just five days on dealer lots in December.”
Ford F-Series sales were 74,355 vehicles in December and 753,851 vehicles for all of 2014.
For the year, Ford sales totaled 2,480,942 vehicles in 2014, flat versus a year ago, primarily due to the all-new F-150 changeover and a planned 15% reduction in daily rental sales.
American Honda’s light truck sales reached new monthly and annual records with December sales of 67,479 units, an increase of 6.2%, and total 2014 sales of 702,351 vehicles, up 1.5%. Acura Division sales also gained strongly in December, posting a 13.1% gain on sales of 17,809 vehicles, helping push the division to its third best year since 2007.
American Honda reported record Honda Division sales of 1,373,029 vehicles for 2014 as overall vehicle sales reached 1,540,872 units, the second-best result in company history and an increase of 1% for the year.
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Nissan, meanwhile, reported total U.S. sales for December 2014 of 117,318 units, an increase of 6.9% compared to last year and a December record. For calendar year 2014, Nissan set an all-time record with 1,386,895 total U.S. sales, an increase of 11.1% over 2013.
Not only did companies sell more cars in 2014, they sold them for a higher price. The average transaction price for light vehicles was $33,168, up 1.9% from a year ago, while average incentive spending per unit increased by $161 to $2,900. The ratio of incentive spending to ATP was 8.7%, contracting slightly from 8.8% in November, according to the new-car buying service True Car.
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“Pricing is strong across most of the industry with the exception of the hybrid/alternative energy segment, which dropped 1.2% as gas prices hit a five-year low,” said Alec Gutierrez, senior analyst for Kelley Blue Book. “Lower gas prices will further help the market for trucks and utilities, which are traditionally popular in December.”
Among those brands benefitting from the strength in trucks and utility vehicles, Fiat Chrysler transaction prices are up 2.3% on strong Ram sales as well as higher Dodge pricing.
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“Another notable automaker is Hyundai Kia with the biggest percentage gain of the major manufacturers at 5.5%,” said Tim Fleming, analyst for Kelley Blue Book.
Carmakers were also boosted by an upturn in consumer sentiment, the University of Michigan’s Survey of Consumers recently reported.