The usual lineup with the growing strength of the Ram pickup truck now in evidence.
U.S. auto sales in December were flat compared to one year ago, raising questions once again about the ongoing jobless recovery and the still fragile health of the American economy. Overall, the light vehicle market tallied 1.3 million vehicles – the same as December of 2012. Flat is not good news for any of us.
Taking a longer view of the economy, though, 2013 was another successful year for the wealth-creating auto business. Twenty Thirteen ran at 15.6 million units, which was an increase of more than one million sales compared to the year before. This was the fourth straight year of growth after the disastrous 2009 and 2010 economic collapse caused by an unregulated Wall Street, corrupt ratings agencies and banks that caused the housing bubble, which when it burst resulted in a global economic contraction not seen since Republican Herbert Hoover’s Great Depression. We are cursed here as ‘we the people’ are still suffering from this calamity while overfed politicians in Washington from both parties continue to bicker.
During 2013, offshore nameplates took the lion’s share of the U.S. market at 55%. This was led by Toyota Motor Sales, which sold 2.24 million cars and light trucks This was close to knocking off Ford Motor (at 2.5 million) from its long-standing Number Two sales ranking, but Ford’s F-Series as the best-selling vehicle in the country for as long as I can remember prevented an upset. (F-Series is America’s best-selling truck for 37 years and the country’s best-selling vehicle for 32 consecutive years.)
However, five of December’s Top 10 selling vehicles were from offshore brands. Noteworthy, while we are on pickups, is the ongoing success of the Ram. It is now in third place behind the F-Series, and Chevrolet Silverado. Chevy and Ford execs are starting to pay attention.
A flat month is bad. In spite of rising truck sales, the import brands still dominate the market.
Then there is the family car battle royal – the U.S.-built Honda Accord displaced the Toyota Camry as the top selling car for the month in fourth place. The Camry was in fifth place, although it should be noted that Camry finished 2013 as best-selling car in the U.S. The Honda Civic, Honda CR-V and Nissan Altima finished in sixth, seventh, and eighth places. There has never been a better time to buy a passenger car, as we have said before. Rounding out the Top Ten were and the Ford Escape and the Fusion, which has been capacity restrained but now has additional support via a newly opened shift from an unproven workforce in Flat Rock, Michigan.
According to AutoData, “tulip bulb” bubble Tesla only sold 1,600 hundred luxury cars in December. Mercedes-Benz was the clear winner for annual luxury-car crown at 334,000. The Tri-Star was followed by BMW (a propeller-based logo) at 309,000.
Biggest news here – with a whopping 22% increase for the year based on the CTS and ATS – Cadillac, yes Cadillac, sold 182,543 vehicles, displacing Audi (158,000) from fourth place. This in our view serves notice that the Germans are going to have a tougher time from one American car company going forward. Cadillac was the fastest-growing full-line luxury brand in 2013, the result of largest new product onslaught since 1976.
Sadly, Ford’s moribund Lincoln brand (82,000 total for the year) cannot play in this league. Chrysler Group also has a hopelessly mucked up strategy and no clear luxury lineup going forward. This is unless you think Lancia could step in (no way in our view) and the delayed – yet again – Alfa Romeo brand reentry into the U.S. are viable options (a long shot now waiting for a Mazda developed sports car). One parting thought. Chrysler Group is clearly out marketing its two other Michigan-based competitors. However, the Chrysler question that is looming large is whether it can save Fiat and Marchionne, not what happens to its own destiny.
