Auto makers lose sales momentum

US car buyers appeared to hit the brake pedal in the new year, as sales by the big three American auto makers declined in January following record sales in 2016. GM, Ford and the North American arm of Fiat Chrysler, FCA US, all saw sales dwindle, though it is a traditionally slow month for car makers as winter sets in and consumers recover from holiday spending.
GM sales fell 3.8 percent compared to January 2016, Ford was down one percent, and FCA US plunged 11 percent. Total new-vehicle sales in January could decrease 2.7 percent year-over-year, according to a forecast by Kelley Blue Book. "After a record December capped a new record year of vehicles sales in 2016, January figures appear to be enduring a hangover effect, potentially falling more than half a million units from the previous month," KBB analyst Alec Gutierrez said in statement last week.
The KBB forecast warned of a continued increase in discounting by automakers, in order to maintain sales momentum. However, GM, the largest US auto maker, said consumers paid record average prices for its vehicles, as the company concentrated on profitability even "while key competitors sold down their large stocks of deeply discounted, old-model-year pickups," US sales chief Kurt McNeil said in a statement. Ford said consumers were paying more on average for its vehicles, as well, thanks to strong demand for its pricier F-Series pickups, which was up 13 percent.
FCA US, struggling among many of its car models, including Chrysler, Fiat and Dodge brands, saw sales increase for Ram trucks and some Jeep SUV models. US car sales have enjoyed two consecutive years of record numbers. Last year, 17.55 million vehicles were sold, according to a tally by Autodata. And December saw a last-minute shopping frenzy, as auto makers offered discounts.