- U.S. automakers on Friday reported another year of stable sales of pick-up trucks, as discounts during the crucial holiday season and lower interest rates on vehicle loans attracted buyers while demand for passenger cars retreated further.
December is among the hottest months for auto sales in the United States as buyers take advantage of significant discounts provided by the car manufacturers to clear inventory. “Pent-up demand among consumers is drained,” said Haig Stoddard, senior industry analyst at forecasting and analytics firm Wards Intelligence, adding that he expects sales to dip further this year as economic growth also slows from 2019.
Overall incentive spending by automakers as a percentage of vehicle retail prices remains close to 11%, the highest level since the 2008 recession, according to the auto consultants. GM’s total U.S. sales fell 2.35% to about 2.9 million vehicles last year, with volumes of its Trax compact SUVs surging about 30% to 116,816 units. Sales of its Cruze cars slumped 66%.
“We have read the expectations that sales may slow a bit in 2020,” said Reid Bigland, head of U.S. sales at Fiat Chrysler.