The U.S. auto industry witnessed record sales for 2015, though December sales fell shy of expectations. Nevertheless, sales volume were good enough to make the year finish on a solid note. Cheap gasoline, employment gains and low interest rates lured buyers to the showroom and became some of the dominant factors for the industry’s success in 2015. General Motors (GM, Financial) is extremely optimistic regarding the economy’s current year auto outlook, which was reflected in a statement made by a company spokesperson who said "The U.S. economy continues to expand and the most important factors that drive demand for new vehicles are in place, so we expect to see a second consecutive year of record industry sales in 2016."Â
An overview
The U.S. auto industry posted a solid 9% sales gain in December, making 2015 the largest sales year ever for the industry. Automakers sold 17.5 million cars and light trucks in the domestic market, surpassing the record which it had set in 2000 by 68,138 vehicles.
Performance of the U.S. automakers
General Motors’ sales soared 5.7% to 290,230 units in December. The sales gain for the month is attributable to Cadillac’s mammoth 29% sales rise. For the whole year, the company sold 3.08 million vehicles in 2015, up 5% from 2014. The chart below shows the monthly sales of the company for 2015 in comparison to 2014:
Data source: goodcarbadcar.net
The combined sales of full- size Chevrolet Silverado and GMC Sierra totalled 824,683 units. As per the company, various crossovers including Chevrolet Traverse posted their best sales ever. Brands like Chevrolet, Buick, GMC and Cadillac delivered 3.1 million vehicles. Also, retail deliveries surged 8% as compared to 2014. Kurt McNeil, GM’s US vice president of sales said, “In a record year for the industry, GM gained significant retail market share and we grew our commercial business by 12%."
The second largest U.S. automaker Ford (F, Financial) saw sales increase by 8.3% to 239,242 vehicles for December. The Blue Oval had a slow start to the year due to the F-Series production issues, however, the automaker managed to sell 780,354 units of its top-selling vehicle during the year. This represents a surge of 3.5% over 2014 sales volume. Ford sold 2.6 million cars and trucks in 2015, up 5% from 2014.
Data source: goodcarbadcar.net
In December, the F-series pickups climbed 15%, which was the company’s best sales ever since 2006. Moreover, the company’s luxury Lincoln brand sales surged 12% for December and 7% for the whole year. Further, MKX sales spiked a stunning 77% for December.
Fiat Chrysler (FCAU), the third-largest U.S. automaker, posted 12.6% sales gain for December. December completes the company’s 69 consecutive months of sales gain. Jeep deliveries increased 42% for the month. Moreover, sales of Dodge, Ram and Fiat rose 6%, 4% and 1% for December. On the contrary, Chrysler brand was down 21% for the month. However, the full year has been extremely rewarding for the company. Reid Bigland, head of U.S. sales said: “FCA US finished 2015 strong with sales up 13% and our best December sales since we started business more than 90 years ago…for the second straight year, the company has topped 2 million in U.S. sales.”
Performance of the other automakers
Toyota’s (TM, Financial) sales climbed 10.8% for the month. For the full year, sales surged 5.3%. The company’s Lexus brand sold 344,601 vehicles for the month, up 11%. RAV4 crossover jumped 17.8%. Moreover, Tacoma midsize pickup and Highlander SUV surged 15.8% and 8.8%.
Nissan (NSANY, Financial) posted a December record by selling 139,300 vehicles, up 18.7%. The combined sales of its trucks, minivans and SUVs including its premium Infinity brand surged 44%. Also, demand for Rogue compact SUV and Murano mid-size utility vehicle remained high.
Honda Motor (HMC) witnessed its best ever December sales with sales surging 9.9%, while Volkswagen (VLKAY, Financial) posted sales drop by 9.1% for the month and 4.8% for 2015.
Last word
Overall the U.S. automakers registered a marvellous month that ensured the year to end on a joyful note. There is tremendous optimism among automakers who believe that the momentum will be carried forward to 2016, which could be another record year.
Disclosure: I have no positions in any stocks mentioned in this article.
