43
U.S. auto industry ends 2018 on strong 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.
Automakers reported an increase of 0.3 percent in 2018 to 17.27 million vehicle sales.
“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 the fourth quarter 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.”
GM’s crossover segment performed well in 2018, with more than 1 million sales, a 7 percent increase over 2017. Some of the leaders in that segment were the GMC Terrain, which was up 34 percent, and the Chevrolet Traverse, up 19 percent.
Sales of the Lordstown-built Chevrolet Cruze were down for the year and the fourth quarter. GM reported delivering 142,617 Cruze sedans and hatchbacks in 2018, a 25.1 percent decline from 2017. For the quarter, Cruze sales were down 7.2 percent to 32,955.
GM will end production of the Cruze on March 11 and has no plans to put another product in the plant.
Fiat Chrysler Automobiles US reported its total U.S. sales rose 9 percent in 2018 to more than 2.2 million. FCA reported its retail sales of more than 1.7 million were the highest since 2001.
American Honda reported 2018 sales of 1.6 million vehicles, a 2.2 percent drop from last year. Its December sales were up 3.9 percent from December 2017, to 155,115.
Toyota Motor North America reported December sales of 220,910 vehicles, a decrease of 0.9 percent from December 2017 on a volume basis. For the year, TMNA reported more than 2.4 million vehicle sales, a 0.3 percent decrease from 2017 on a volume basis and a 0.6 percent decrease on a daily selling rate basis.
Ford Motor Co. posted an 8.8 percent sales decline in December, to 220,774. For the year, Ford reported sales of nearly 2.5 million, a 3.5 percent decline from 2017.
Kelley Blue Book said Thursday that the estimated average transaction price for light vehicles in the U.S. rose to $37,577 in December, a 1.3 percent increase from December 2017 and a 0.2 percent decrease from November 2018. The average transaction price for a GM vehicle was $40,943 last month, according to KBB.