DETROIT (AP) — December U.S. auto sales slowed a bit from
the brisk pace earlier this year, but automakers still were on target
to finish 2013 with the best numbers in six years.
Chrysler
managed a 6 percent gain for December, but General Motors, Toyota and
Ford and Volkswagen each posted disappointing numbers. Still, most major
automakers reported at least a 7 percent increase for 2013, and
analysts expect full-year sales to be up around 8 percent to 15.6
million when all the numbers are in. That would be the highest sales
figure since 16.1 million in 2007.
"The auto industry was a
consistent bright spot in the economic recovery throughout 2013," Bill
Fay, Toyota division group vice president, said Friday in a statement.
"We expect the economy will continue to gain strength in 2014, with car
sales rising to pre-recession levels."
But analysts say discounts
rose in December, and there were signs that automakers were beginning to
lower prices to match competitors and woo customers. That could mean
better deals in the coming year, especially on pickup trucks and midsize
cars.
GM’s December sales were off more than 6 percent as sales
of its top-selling model, the Chevrolet Silverado pickup, fell 16
percent. Toyota sales were down 1.7 percent from a year ago, while Ford
sales were up only 1.8 percent for the month. Volkswagen, which has
struggled all year, saw sales fall 23 percent.
GM’s pickup truck
sales apparently fell victim to heavy discounts that Ford offered on its
F-Series, which posted an 8 percent gain in December. Chrysler’s Ram
pickup also posted a large gain at 11 percent.
For the full year,
though, Ford led all major automakers with an 11 percent gain to almost
2.5 million vehicles. Chrysler sales were up 9 percent to 1.8 million
cars and trucks, while GM sales rose 7 percent to 2.8 million. Toyota
sales were up 7 percent to just over 2.2 million cars and trucks. But
the VW brand struggled, with sales falling 7 percent to nearly 408,000.
Analysts
expect automakers will need to work harder this year to maintain sales
momentum. Auto sales have risen by more than a million vehicles per year
since 2009, when just 10.4 million cars and trucks sold. But some
analysts expect growth to slow to as little as 400,000 this year, with
total sales around 16 million.
That should be good news for shoppers: automakers likely will offer deals to protect or increase market
share.
"We
think there’s going to definitely be more competition," said Larry
Dominique, president of Automotive Lease Guide, a company that tracks
lease costs and car prices.
As a result, Dominique said, consumers should look for more bargains, especially on pickup trucks and
midsize cars.
For
December, analysts had predicted sales of around 1.4 million new cars
and trucks, expecting consumers to take advantage of year-end closeouts,
low interest rates and sweet lease deals. But Black Friday deals may
have pulled some sales into November, and a series of big storms last
month may have kept a few car buyers at home.
Dominique also
thinks the pent-up demand that has driven sales is starting to ease.
People have been replacing cars and trucks they kept through the
recession and the slow recovery. The average age of a vehicle on U.S.
roads today is a record 11.4 years, according to the Polk research firm.
In
December automakers raised rebates and other incentives as they pushed
to make year-end sales goals. Average incentives were up 4 percent
compared with a year ago to $2,676 as Ford, Hyundai/Kia and Honda led
the way with sweet deals, according to the TrueCar.com auto pricing
site.
Ford raised incentives a whopping 22 percent last month as
it sparred with Chevrolet and GMC over pickup truck sales and battled
for small-car buyers, Dominique said. Hyundai/Kia incentives were up
nearly 18 percent, while Honda raised its deals by almost 15 percent,
according to TrueCar. Ford Focus buyers, for instance, could get as much
as 25 percent off the sticker price, according to Dominique. Only
Chrysler, which traditionally has had high incentives, cut them in
December, by 9 percent.
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