U.S. auto sales for November remained flat as two of the big three automakers- General Motors Co. (GM, Financial) and Fiat Chrysler Automobiles NV (FCAU, Financial)- saw sales decline due to poor fleet sales. On the other hand, Ford Motor Co.’s (F, Financial) U.S. sales surged 6.7% on a year-over-year basis.
Performance of U.S. automakers
General Motors witnessed a 2.9% sales decline to 245,387 vehicles as compared with the same period last year. While retail sales were mixed, fleet sales soared 13% year over year. The Detroit-based automaker saw immense growth in the SUV and crossover segment, thereby pushing the average transaction price to over $37,000 for the first time. Crossover sales for major brands like Chevrolet, Buick, Cadillac and GMC spiked for the month.
Ford, the only automaker to report positive sales growth, said its fleet sales soared 26% while retail sales went up by 1.3% as compared with a year ago. Truck and SUV sales increased 4% and 13.3% respectively. Car sales improved 2%. In the F-Series segment, the Super Duty truck and the new 2018 F-150 experienced robust demand, which brought the average transaction price of trucks to $47,100 for November. A combination of these factors powered Ford’s U.S. sales significantly.
Fiat Chrysler’s sales plunged 13% year over year, which was more than analysts had projected (10% plunge). The company’s retail sales rose, but fleet sales declined 25%. Chrysler was one of several brands to report sales growth while Jeep, Dodge and Ram tumbled.
Performance of other automakers
Toyota Motor Corp. (TM, Financial) witnessed a meagre sales decline of 0.3% in November, versus a projection of 0.2% sales gain. Factors contributing to the decline were poor sales of Toyota brand and Lexus, which fell 2.4% and 6.7% respectively. In contrast, truck sales rose 2.3% to 114,701 units and RAV4 sales improved 2.2% to 28,736 units.
Honda Motor Co. Ltd.’s (HMC, Financial) sales were strong in November, with sales of light trucks and cars increasing a combined 8.3%. In the SUV segment, Honda Pilot sales jumped 57% while CR-V sales climbed 25%.
Last word
The seasonally adjusted annualized sales rate for November stood at approximately 17.3 million vehicles, which was lower than 17.7 million vehicles in the prior-year period. Due to the sluggish November sales, analysts do not expect annual sales to be as high as last year’s record of 17.55 million units. The carmakers, nonetheless, have begun offering discounts and various incentives, hoping to end the year on a high note.
Kurt McNeil, GM's vice president of sales, commented:
“More vehicles are sold in December than any other month and we are very well positioned because we have momentum in so many segments, but especially in crossovers.”
It will be interesting to see how 2017's annual sales compare to those of 2016.Â
Disclosure: I do not hold any position in the stocks mentioned in this article.
