U.S. 2019 Auto Sales Hit 17-Million Mark But Decline Y/Y
Zacks Investment Research | Jan 06, 2020 09:21PM ET
U.S. auto sales data for 2019 is out, with all major auto companies having reported fourth quarter and full-year sales numbers. According to Automotive News, domestic light vehicle sales totaled 17.1 million units in 2019. With that, automakers hit the goal of 17-million sales for the year. Notably, the 17-million sales mark was achieved for the fifth straight year. Importantly, 2000 and 2001 were the only years before 2015 when car sales touched 17 million units.
Fed’s dovish stance, low unemployment rates and robust wage growth were tailwinds for the consumer-cyclic auto industry in 2019. Strong economic conditions and healthy consumer sentiments contributed to robust 17-million sales. However, it’s not all good news. While automakers managed to top 17 million unit sales, total sales volumes were shy by around 200,000 units from the 2018 level of 17.3 million. Tariff woes, increasing popularity of ride sharing services and rising car prices on the back of technological advancements tamed consumer demand to some extent, resulting ina year-over year decline in U.S. auto sales.
With more and more sedans getting discontinued, demand for compact SUVs and trucks remained strong. RAM pickups posted the biggest year-over-year gain of 18%. Kia Telluride, the new midsize SUV, recorded strong sales. Mitsubishi’s Outlander registered the best salesfigure in the last 13 years. Hyundai Motor — aided byPalisade and new Santa Fe SUVs —registered its best sales figure since 2016 of 688,771 units, up 3% year over year. Volkswagen’s (OTC:VWAGY) U.S. sales were up 2.6% year over year to 363,322 vehicles on the back of strong deliveries of Jetta, Atlas and Tiguan, among others. Mercedes-Benz USA and BMW’s U.S. sales were also up 1% and 1.8% year over year, respectively.
However, leading Japan-based automakers like Toyota Motor (NYSE:TM) and Nissan Motor (OTC:NSANY) recorded decline in U.S. car sales from 2018. Detroit 3 carmakers including General Motors (NYSE:GM) , Ford (NYSE:F) and Fiat Chrysler (NYSE:F) witnessed fall in car sales in 2019. Let’s delve deeper into the sales figures of these auto bigwigs.
Big 3 U.S. Automakers’ Sales Stumble in 2019
For full-year 2019, General Motors’ U.S. sales declined 2.3% to 2,887,046 units. While the company was hit by lower overall sales of the Chevrolet brand, sales from GMC, Cadillac and Buick brands edged higher. Lower year-over year sales of a few models like Chevrolet Tahoe and Suburban, GMC Yukon, Cadillac Escalade, Chevrolet Maibu and Bolt resulted in overall decline in sales volumes. Nonetheless, the top U.S. carmaker had its best year for crossovers and achieved yearly records in the compact, small and small luxury segments.The company’s crossovers rose 12.7% from a year ago in 2019 to about 1,165,769 units. Models like Chevrolet Trax, Traverse, and Equinox, among others, registered gains in sales volumes.
Fiat Chrysler’s overall sales in 2019 totaled 2,203,663 units, down 1% from the 2018 level. Overall sales from the company’s top-selling Jeep brand also dipped 5% year over year to 923,291 units. Total sales from Chysler, Dodge, Fiat and Alpha Romeo brands also declined in 2019. The major highlight of the year for Fiat Chrysler was the RAM brand, which recorded sales of 703,023 units, up18% year over year. Markedly, the Dodge Charger recorded sales of 96,935 vehicles for the year, the best since 2013.The Gladiator ended the year with 40,047 unit sales, following its May debut.
Ford’s total vehicle sales in the United States declined 3% year over year to 2,422,698 in 2019,as the firm trimmed sedans from the Ford brand. While the Ford division sold 2,310,494 units (down 3.5%), the Lincoln marque recorded sales of 112,204 units (up 8.3% year over year). While the company’s overall sales of cars and SUVs declined in 2019, that of trucks recorded yearly gains of 9.1% to amount to 1,243,136 units. While Ford F-Series remained the firm’s best-selling nameplate in the U.S. market with 896,526 units, it marked a year-over-year decline of 1.4%. Meanwhile, Transit, Transit Connectors and heavy trucks registered gains. Ranger sales totaled 89,571 in its first year following its return to the market.
Ford currently carries a Zacks Rank #3 (Hold). You can see Zacks Investment Research
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