Car Sales Roll Along, Aided by Discounts -- WSJ
December 02 2016 - 3:02AM
Dow Jones News
By Anne Steele and Adrienne Roberts
A spate of Black Friday deals and two extra selling days lifted
U.S. light-vehicle volumes 3.5% higher in November compared with a
year earlier, raising the possibility annual sales will eclipse a
record 2015 performance.
Five of the top six auto makers selling in the U.S. posted
gains, with demand driven by low gasoline prices that have
increased the appetite for light trucks and sport utility vehicles.
Buyers took advantage of the deepest discounts in the industry's
history, according to J.D. Power estimates.
The average transaction hit a record $31,719, driven by the
higher sticker prices attached to pickups, crossover wagons and
SUVs, the firm said. Auto makers dished out nearly $4,000 per
vehicle in discounts and rebates, however, equaling nearly 11% of
the selling price compared to 9.4% a year ago.
While the industry is on track to equal 2015's 17.5 million in
vehicle sales, growth has stalled after six consecutive years of
substantial annual gains. The seasonally adjusted annual sales pace
hit 17.87 million, well below the 18.25 million mark set last
November.
The economy and end of the presidential election helped keep
sales brisk. "It's probably no coincidence that this month's strong
sales performance come at the same time that the Dow Jones
[Industrial] Average reached an all-time high," Edmunds.com analyst
Jessica Caldwell said. "Shoppers have more confidence in the
economy than they had just a month ago."
General Motors Co. reported the biggest gains among major auto
makers, selling 252,644 vehicles, or 10.2% more than the same
period in 2015. Ford Motor Co. posted a 5.1% increase and Fiat
Chrysler Automobiles NV recorded a 14% skid amid slightly lower
retail sales and a large pullback in fleet sales.
Toyota Motor Corp., Honda Motor Co. and Nissan Motor Co. each
reported sales increases of at least 4%. Volkswagen AG, meanwhile,
reported a 15.7% increase after a string of declines that came in
the wake of an emissions-cheating scheme being disclosed in late
2015.
Write to Anne Steele at Anne.Steele@wsj.com
(END) Dow Jones Newswires
December 02, 2016 02:47 ET (07:47 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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