Economy
US Auto Sales Weaker than Expected for December
Written by Sandy Williams
January 5, 2014
December US auto sales failed to meet expectations but annual sales still registered as the best year since 2007. December sales were up just 0.3 percent but automakers were pleased with the 7.6 percent overall gains for 2013. The seasonally adjusted annual rate of 15.6 million units was well below the 16.0 million predicted by analysts and the 16.4 million SAAR of November but within the range forecast by those in the auto industry. Severe winter weather and the late Thanksgiving holiday sales took their toll on December volumes.
Sales for 2014 are expected to reach between 16 million and 16.5 million, but with potentially lower profit as keen competition pushes automakers to offer higher buyer incentives.
GM surprised analysts with a 6 percent drop in sales to 230,157 vehicles in December. Total sales for the year were up 7 percent to 2.8 million vehicles delivered in 2013. Ford sales increased 2 percent in December; 2013 sales were up 14 percent to 2.49 million vehicles. Chrysler Group reported December sales up 6 percent with 161,007 units sold during the month. Sales for 2013 were up 9 percent from the previous year to 1.8 million units.
Toyota sales dropped 1.7 percent year-over-year with delivery of 190,843 vehicles in December. Annual sales increased 7.4 percent to 2.23 million vehicles.
Hyundai Motor reported sales up 6 percent to 63,004 vehicles in December. Sales for 2013 reached a record high of 720,483 vehicles but failed to reach Hyundai’s target of 734,000 for the year.
Kia sales fell 14 percent to 33,631 units in December and 4 percent for 2013.
Honda and Nissan sales were up for the month. Honda sold 135,255 units for an increase of 1.9 percent year-over-year. American Honda Motor Corp. annual sales were up 7.2 percent to 1.5 million vehicles. Nissan sales leapt 10.5 percent in December and 9 percent for 2013, for totals of 110,000 units and 1.25 million units, respectively.
Volkswagen continued to have struggling sales this year with December sales dropping 22.7 percent to 34,015 units. Sales for 2013 surpassed VW’s goal of 400,000 with 407,704 vehicles sold during the year, but was still 6.9 percent below 2012 levels.
Subaru and Mitsubishi reported December sales up by 62.4 percent and 14 percent, respectively.
Sandy Williams
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