Despite December Slump, Car Sales Best In 6 Years

, Daily Business Review

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December U.S. auto sales slowed a bit from the brisk pace earlier this year, but automakers still were on target to finish 2013 with the best numbers in six years.

Nissan posted an 11 percent gain for December and Chrysler managed a 6 percent increase. But General Motors, Toyota, Ford and Volkswagen each posted disappointing numbers. Still, most major automakers reported at least a 7 percent increase for 2013, and analysts expect full-year sales to be up around 8 percent to 15.6 million when all the numbers are in. That would be the highest sales figure since 16.1 million in 2007.

"The auto industry was a consistent bright spot in the economic recovery throughout 2013," Bill Fay, Toyota division group vice president, said Friday in a statement. "We expect the economy will continue to gain strength in 2014, with car sales rising to pre-recession levels."

But automakers may need to do more to lure shoppers into showrooms. Analysts say discounts rose in December, and there were signs that automakers were beginning to lower prices to match competitors. That could foreshadow better deals in the new year, especially on pickup trucks and midsize cars.

GM's December sales were off more than 6 percent as sales of its top-selling model, the Chevrolet Silverado pickup, fell 16 percent. Toyota sales were down 1.7 percent from a year ago, while Ford sales were up only 1.8 percent for the month. Volkswagen, which has struggled all year, saw sales fall 23 percent.

Ford and GM said bad weather cut into December sales, and discounts in late November pulled sales ahead from December.

John Felice, Ford's U.S. sales chief, said he wasn't concerned about softer sales in December. November sales were better than expected because of strong sales on Black Friday weekend, he said, so that took some steam out of sales in the beginning of December. About half of Ford's December sales came in the final week of the month, he said.

Poor weather throughout the month also may have kept many buyers home, he said. But December's sales pace was still tracking at an annualized pace of more than 16 million vehicles, a healthy rate for the industry, he said.

GM's pickup truck sales apparently fell victim to heavy discounts that Ford offered on its F-Series, which posted an 8 percent gain in December. Chrysler's Ram pickup also posted a large gain at 11 percent.

For the full year, though, Ford led all major automakers with an 11 percent gain to almost 2.5 million vehicles. Chrysler sales were up 9 percent to 1.8 million cars and trucks, and Nissan also posted a 9 percent gain to nearly 1.25 million vehicles. GM sales rose 7 percent to 2.8 million. Toyota sales also were up 7 percent to just over 2.2 million cars and trucks. But the VW brand struggled, with sales falling 7 percent to nearly 408,000.

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