Fuel discounts on US pickup truck sales in a slowing market
NEW YORK: US automakers reported another stable sales of pick-up trucks on Friday, as discounts during the crucial holiday season and lower interest rates on vehicle loans attracted buyers, while the Passenger car demand declined further.
Passenger cars have fallen out of favor with shoppers amid lower oil prices and automakers have focused on selling larger sport utility vehicles (SUVs) and vans that are also more profitable.
December is one of the hottest months for the sale of cars in the United States, as buyers take advantage of the significant discounts provided by car manufacturers to clean inventory.
Analysts expect total US sales. UU. In 2019 they fall approximately 1% compared to 2018, but they still end up above 17 million vehicles for the fifth consecutive year.
But sales could fall below the 17 million mark this year, industry experts warned, as demand has peaked after the long run since the 2008 financial crisis.
Cumulative demand among consumers is depleted, said Haig Stoddard, senior analyst at the forecasting and analysis firm Wards Intelligence, adding that he expects sales to fall further this year, as economic growth also slows to from 2019.
Automotive consultants LMC Automotive and JD Power have predicted that total demand for light vehicles will decrease 1.4% to 16.8 million units in 2020.
Manufacturers will face a lot of pressure to stand out in a crowded market with almost 60% more redesigned or new entries in 2020 than in 2019, wrote Jeff Schuster, president of global vehicle forecasts at LMC Automotive, last week.
According to automotive consultants, the general spending on incentives of car manufacturers as a percentage of retail vehicle prices remains close to 11%, the highest level since the 2008 recession.
General engines Co, which was hit by a one-month strike by its 48,000 employees per hour, reported a 6.3% drop in fourth-quarter sales to 735,909 vehicles.
Our fourth-quarter actions were scarcer than we wanted, but as we prepare to launch our new full-size SUVs, we expect another solid year in 2020, said Kurt McNeil, GM's vice president of sales operations in the US. UU. .
GM's total sales in the US UU. They fell 2.35% to approximately 2.9 million vehicles last year, and the volumes of their Trax compact SUVs increased approximately 30% to 116,816 units. Sales of their Cruze cars fell 66%.
Toyota Motor Corp reported a 5% drop in sales of passenger cars in the United States last year, compared with a 0.8% drop in sales of its trucks and SUVs. Total sales decreased 1.8% to 2.4 million vehicles.
Fiat sale Chrysler Automobiles NV dropped 1% to 2.2 million vehicles in 2019. The Jeep manufacturer reported an 18% increase in the number of Ram trucks.
“We have read the expectations that sales may slow a bit in 2020,” said Reid Bigland, head of US sales at Fiat Chrysler.
Silicon Valley car manufacturer Tesla Inc delivered around 367,500 vehicles during 2019, only meeting the lower limit of its goal of delivering 360,000 to 400,000 vehicles.
FILE PHOTO: The logo of the car manufacturer Fiat is seen in Zurich, Switzerland October 30, 2019. REUTERS/Arnd Wiegmann
U.S. sales of Nissan Motor Co in 2019 fell 10% to a minimum in six years of 1.3 million vehicles. The automaker remains immersed in a crisis after former boss Carlos Ghosn was arrested in Japan in 2018 for financial misconduct, a charge he denies. He fled to Lebanon earlier this week after escaping from Japan.
Ford Motor Co plans to report quarterly sales on Monday.