December brought holiday cheer to most automakers. Ward’s reports better than 1.5 million cars and light trucks were snapped up last month, yielding a seasonally adjusted annual rate (SAAR) of 18.40 million units, by far the highest in 2004.
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The strong month gave carmakers nearly 16.9 million sales for the year, the industry’s best showing since 2001.
Even adjusting the daily sales rate (DSR) for last month’s extra selling day, turnover was 3.6% ahead of December 2003 and numerous monthly and annual records were broken. Toyota’s Lexus, Scion and Toyota brands combined for more than two million sales in 2004. Honda, Subaru, Porsche, Nissan and Hyundai also posted record-setting annual numbers.
Though DSR adjustments left it in the deficit column, Ford posted its first monthly volume increase in passenger car sales since January 2003. The F-Series pickup set new records, cruising to an easy 23rd year as America’s favourite vehicle. Total Ford Division sales were up 2%, securing it one more year as the nation’s favourite automotive brand.
Ford also got good news from two of its PAG brands. Volvo hit new monthly and annual benchmarks and the new LR3 [Discovery] helped drive Land Rover sales up 49.4% to a new December record.
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By GlobalDataDaimlerChrysler enjoyed a good Christmas as the hot Chrysler 300 set the pace for the company’s passenger car lines and the Dodge Caravan reinforced its position at the top of the minivan segment. Chrysler sales were up 5%, making it the only Detroit automaker to exceed its 2003 mark for the month and year. Mercedes also ended the year nicely with new December and annual sales records.
GM took a market share hit as the Red Tags incentives programme couldn’t help it match its December and full-year performances of 2003. It came up 6.7% shy of its December mark and ended the year down 1.2%. Bright spots were Cadillac, which closed out 2004 by passing Mercedes in total sales, and Chevrolet, where the Impala became the best-selling American car.
Toyota celebrated with sales records all round. The Camry retained its crown as 2004’s best-selling car, though the Accord outsold it in December, and Lexus captured the top spot in the upscale market for the fifth consecutive year.
Premium brands captured over 12.4% of sales in December, their largest share of the year. Mirroring a trend in the larger American consumer market, luxury segment volume increased to about 11% of total 2004 sales.
There were few changes at the top in each segment. Perhaps the most significant was that, for the first time, no American brand made it into the top three in passenger car sales. Those spots went to the Camry, Accord and Civic. The Impala finished out of the money in fourth.
Though demand for larger models is declining, the flood of new crossover vehicles has ensured growth in the SUV segment. Combined with Americans’ appetites for big pickups, trucks claimed almost 58% of sales in December. This isn’t all good news for Detroit. Import brands are staking out a bigger piece of the action. Toyota’s Tundra and Nissan’s Titan outsold Chevy’s Avalanche in 2004 and five imports were among the 16 SUV brands that sold over 100, 000 units last year.
Overall, foreign brands captured over 41% of the light vehicle market in 2004 as well as almost 58% of passenger car sales. These gains have come at the expense of Ford and GM, in spite of a year of aggressive incentives. While both companies are rolling out much-needed new products, it remains to be seen if these will be enough to turn the tide in 2005.
Bill Cawthon
click here for Ward’s US Light Vehicle Sales Summary
click here for Ward’s US Light Vehicle Sales by Company
