A roaring sale of new vehicles in December 2016 pushed US annual sales to 17.5 million in the year, overtaking 2015 figures by more than 50,000 units margin.
The robust trend saw auto industry sell more than 1.6 million vehicles in December 2016, and coincides with renewed optimism for the America’s economic growth.
According to J.D. Power research company, during December 2016, two of the three Detroit-based automakers and Japan’s majors posted year-over-year sales increases. Even Europe’s largest automaker—the embattled Volkswagen Group—posted a double-digit improvement in December, it said.
‘Demand for SUVs and pickups—along with substantial end-of-year incentives averaging as much as $4,000 per vehicle—helped automakers clear 2016 model-year vehicles.”
Auto giant General Motors (+10%), posted one of its best December totals in a decade. Ford has reported its best year in a decade.
Japanese carmakers Nissan Group (+9.7%), American Honda (+6.4%), and Toyota Group (+2%) racked up gains and set sales records with double-digit boosts in truck and SUV sales. South Korea’s Hyundai Group (-0.9%) sales dipped, even with the Kia brand setting a record, the research company said.
Among European brands, BMW (-5.4%) sales continued to slip in December, while Daimler’s Mercedes-Benz (-6.4%) also posted lower sales, although it was the luxury brand sales leader in 2016. Volkswagen Group (+16%) posted a major improvement from its three major brands. Jaguar Land Rover (+30%) made news with strength from a new Jaguar SUV. Additionally, among the three independents, Subaru (+12.3%) led, followed by Mitsubishi (+1%), while Mazda (-1.8%) slipped, data cited by J.D. Power in a report says.
While record December sales indicate a continuing growth in the economy and consumer confidence, not everything is doing great in the American auto industry. The Wall Street Journal noted in a report that “Detroit’s three auto makers are closing some factories in January to lower inventories or even laying workers off at car plants.”
Yet, the soaring auto sales present President-elect a far better industry scene than what it was eight years ago, when President Barack began his first time amid continuing recession and a spate of economic challenges.
“Still, President-elect Donald Trump’s administration will inherit a far healthier auto industry compared with what President Barack Obama encountered eight years ago. In 2009, auto sales were collapsing amid a wider financial crisis and the Obama administration spent considerable time crafting bailouts for Detroit car companies and figuring out how to goose sales,” the Journal noted in a report.
