Auto Sales in the U.S. Skyrocket Even If December Proves To Be a Lean Month


Ever since boom time during the pre-2008 phase, automakers have recorded new heights in 2013. Only the late holidays for Thanksgiving robbed them of a year-end with a bang. December month proved to be a dampener even if auto sales in US increased substantially throughout. This however has not deterred analysts and market watchers to predict that in 2014 the industry is going to continue with the dream run. It’s growth is all set to outpace even the developments in the US economy in the coming times. This is surely heartening news for everybody in the post-recession scenario.

December sales is just a unique happening where the late Thanksgiving became punched with ice storms and snow which naturally kept the buyer away from automakers, dealerships, and even the analysts. Christmas shopping took precedence over car purchase and this led to tough sledding during year-end. Resultantly experts are of the view that one shouldn’t read too much into the way sales turned out at the end of 2013.

Sales during the previous year ended with 15.6M vehicles, which is almost 7.6% increase from 2012. Growth rates during December were just 0.3% compared to this staggering run. Annualized rate of sales during this month was 15.4M cars, which is 16M less compared to that expected. What has baffled the analysts and automakers is the fact that traditionally December remains one of the best months when it comes to vehicle purchase. This year however the trend has reversed somewhat with this being the leanest month.

The holiday season during the late December proves to be the period of heaviest sales at auto dealerships across the US. The largest automakers in the nation including General Motors, Volkswagen AG, and Ford are of the view that inclement weather proved to be more of a limiting factor than a late Thanksgiving. Shares of GM ended at 3.4% low at $39.57 and shares of Ford rose almost 0.5% closing at $15.50 on NYSE.

While considered overall sales throughout the year 2013 have proved to be almost 50% higher when compared to the 2009 run for the automakers. During that time, vehicle purchase slumped to an all-time low to just 10.4M cars when the recession was in full swing. Considered in an annual scenario, it is the best record of sales since 2007 where purchases reached the 16.1M ceiling. Prediction for 2014 includes a sales rise between 16 M – 16.1M with high intensity of competition between the automakers.