The beginning of the holiday shopping season on Thanksgiving
saw a surge in automobile sales in the U.S. An improving U.S.
economy and strong sales over the Thanksgiving weekend and Cyber
Monday resulted in robust November sales.
Auto sales in the nation increased 9% year over year to 1.24
million units in Nov 2013. Sales on a seasonally adjusted rate
(SAAR) basis climbed 7.2% from Nov 2012 to 16.4 million vehicles.
This is the highest SAAR since Feb 2007. The strong
year-over-year growth is commendable considering that sales in
Nov 2012 surged due to high replacement demand following
Most major automakers like
Ford Motor Co.
Toyota Motor Corp.
Nissan Motor Co.
) reported high sales in Nov 2013, although
Honda Motor Co., Ltd.
) witnessed a year-on-year dip. Chrysler led in terms of
year-over-year increase in sales, followed by General Motors.
Ford recorded the best November retail sales since 2004, while
Chrysler witnessed the best November sales since 2007. General
Motors also saw the best November sales in six years.
Furthermore, Nissan created a new November U.S. sales record.
Let's look at the U.S. sales figures reported by the
General Motors recorded 212,060 vehicle sales in November,
rising 14% year over year due to strong demand for all 4 brands -
Chevrolet, Cadillac, GMC and Buick. Retail sales increased 19%,
although fleet sales declined 3%.
The company is launching many vehicles in 2014, including
Chevrolet Colorado, the revamped Cadillac Escalade and the ELR.
New heavy-duty pickups and large SUVs under the GMC and Chevrolet
brands are also set for release. These additions are likely to
improve sales in the coming months.
Ford reported a 7% hike in total sales, from a year ago, to
190,449 vehicles. The company has generated year-over-year growth
in sales in every month since Nov 2012. Retail sales rose 9% to
147,021 vehicles. The impressive performance was mainly driven by
strong demand for its F-Series pickup truck, Fusion and Fiesta.
Sales of Fusion surged 51% to 22,839 units. Fiesta and Fusion saw
their highest November sales. Sales of F-Series pickup truck grew
16% to 65,501 units.
Chrysler Group - controlled by Italy's
) - recorded a 16% year-over-year rise in sales, bringing the
figure to 142,275 vehicles, driven by strong demand for its
Chrysler, Jeep, Dodge and Ram Truck brands. Chrysler has
witnessed year-over-year increase in monthly sales for 44
consecutive months. Ram truck's sales gained 25%, while the Jeep
brand's sales jumped 30%. Even the Chrysler and the Dodge brands'
sales improved 12% and 4% year over year, respectively.
Toyota sales increased 10.18% on a volume basis to 178,044
units. Sales increased 5.9% year over year in terms of daily
selling rate (DSR). Sales in the Toyota division improved 9.7% on
the basis of volume and 5.5% on DSR basis to 152,433 units. Lexus
sales rose 8.4% on DSR basis and 12.7% on volume basis to 25,611
Honda, however, recorded a 3.9% year-over-year decrease in
sales on DSR basis and 0.1% decline on volume basis to 116,507
vehicles due to lower sales in the Honda division, offsetting the
increase in the Acura brand. While sales in the Honda division
declined 2.3% to 101,948 units, the Acura division's sales
expanded 18.9% to 14,559 vehicles.
Nissan Motor posted a 10.7% year-over-year increase in sales
to 106,528 vehicles in November. Sales in the Nissan division
also climbed 10.8% to 93,376 units, due to significant increase
in sales of Sentra, Altima, LEAF and Frontier models. Even the
sales of the Infiniti Division hiked 10.5% to 13,152 units in the
This strong sales trend is expected to continue in December,
which generally witnesses high luxury car sales. In the
long term, sales are expected to rise on the back of strong
pent-up demand, easier car financing and low gas prices.
Additionally, improving macroeconomic conditions such as low
interest rates, reduced unemployment rates and recovery of the
housing market, are likely to boost sales. These catalysts are
expected to drive U.S. auto sales to pre-recession levels.
General Motors expects full-year sales to exceed its guided
range of 15.0-15.5 million units, while Ford projects annual
sales in the band of 15.0-16.0 million units in the U.S.,
compared with 14.5 million unit sales recorded in 2012.
As the automobile sector is a key industry for growth,
improving auto sales will help the overall U.S. economy's
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