Auto industry closes 2018 on high note

YOUNGSTOWN

Despite sales of the Chevrolet Cruze dropping 25 percent, the U.S. auto industry ended 2018 on a strong note, though analysts expect sales to slow this year.

Both Edmunds and Cox Automotive estimated more than 17 million vehicles were sold in the U.S. in 2018. Auto sales totaled about 17.2 million in 2017.

“New vehicle sales were surprisingly strong in 2018 despite late cycle headwinds from higher interest rates and more nearly new competition in the used market,” said Jonathan Smoke, chief economist at Cox Automotive, who attributed this to “stimulated demand” from tax reform. However, “While 2018 managed to post a gain in new-vehicle sales over 2017, thanks to tax reform, that boost is not likely to be repeated in 2019.”

General Motors, which operates an assembly plant in Lordstown that it plans to close in March, posted sales declines for the full year and for the fourth quarter, according to a sales report released Thursday.

GM reported delivering more than 2.9 million vehicles in 2018, a 1.6 percent decline from 2017. Its 785,229 U.S. vehicle sales in Q4 represented a 2.7 percent drop from the same quarter in 2017.

“We have built the most successful pickup, SUV and crossover business in the industry and we gained considerable momentum in the fourth quarter of 2018 as dealers began delivering the all-new Chevrolet Silverado, GMC Sierra and Cadillac XT4,” said Kurt McNeil, GM’s U.S. vice president of sales operations. “We feel confident heading into 2019 because we have more major truck and crossover launches coming during the year and the U.S. economy is strong.”