January got the new year off to a good start as US light vehicle sales rose 1.2% to nearly 1.16m.
The seasonally adjusted annualised sales rate (SAAR) checked in at 17.16m, down about 1.6% from January 2017. There was an extra day last month, turning the 1.2% surplus into a 2.9% deficit on a daily sales rate basis.
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Estimated average transaction prices dropped a bit from December’s record high, off US$380 (GBP267) to $36,495 (GBP25,611), but were up about 3% from January 2017. Incentive spending was also higher, averaging an estimated $3,657 (GBP2,566) per vehicle, up 5% from a year ago.
Since there hasn’t yet been a lot of growth in American household incomes, the higher transaction prices are being covered with longer financing terms and leases. Analysts say that the average term for a new vehicle loan is skirting 67 months.
But it’s more than just economics driving transaction prices up, it’s the choices Americans are making.
Crossovers and SUVs claimed 46.5% of all new vehicle deliveries January, adding 3.9% to their piece of the pie. Overall, light trucks accounted for 68.3% of sales last month. Of course, that’s good news for automakers that make more profit from selling crossovers and pickups. Car sales fell 11.4% in January and now hold slightly more than three of every 10 sales.
There were some significant changes in the pecking order in January. Toyota outsold Ford and Nissan passed Honda with another record sales month. FCA held on to fourth in the rankings by less than 9,300 units.
Nissan’s Rogue [X-Trail elsewhere] crossover rode a 25.8% surge to break up the long standing pickup troika at the top of the charts. The Rogue finished the month third in the standings, more than 6,700 sales ahead of the Ram pickup. The best selling passenger car, the Toyota Camry, was down to seventh on the list, behind three pickups and three crossovers.
FCA took the biggest hit of the major players but the shortfall was entirely due to a 50.5% reduction in daily rental fleet sales. Jeep finally broke its long streak of disappointing results and posted a small gain. That was enough to give it the top spot in utility brands.
Ford slumped last month. Fleet sales, which are a critical component in its results, were down and car sales took a big hit. The F-series pickups, still the top selling vehicle line, accounted for 36.7% of total corporate volume.
A 32.9% jump in Chevrolet utility sales boosted General Motors into the black in January. Total utility sales rose 15.8% among GM’s four brands. Buick also provided a nice assist with a triple digit gain in LaCrosse deliveries.
Toyota was firing on all cylinders as sales climbed 17% thanks to a 26.9% increase in light truck deliveries and a 5.9% increase in car sales. Lexus wasn’t far behind with a gain of 15.0% built on a 23.6% gain in utility sales.
Audi notched its seventh consecutive year of sales gains last month. Subaru isn’t far behind at 74 months.
Mercedes began 2018 the same way it ended 2017: at the top of the premium segment. BMW was the runner-up, followed by Lexus and Audi.
There’s good reason to be mildly optimistic about the coming year. With the new US tax overhaul, there will be a number of employees receiving bonuses and/or raises. If the US can avoid any major economic upheavals, the soft landing for automakers should continue.
* indicates a sales record.
**Volkswagen Group figures include Audi, Bentley, Porsche and Volkswagen brands
Other includes estimated sales for Aston-Martin, Ferrari, Lamborghini, Lotus, McLaren, Rolls-Royce and Tesla
