Happy days are here again.
Increased sales volume and higher transaction prices in January generated $37.6 billion of net revenue for automakers in the U.S., a 17.2 % increase from the year-earlier month. Preliminary estimates show U.S. sales of new cars and light trucks expanded 13.2% last month, reaching the highest January volume since 2000.
The average transaction price (ATP) for light vehicles was $32,812, up 3.5% from a year ago, while average incentive spending per unit increased by $93 to $2,642. The ratio of incentive spending to ATP was 8.1%, expanding slightly from 8.0% compared to the previous year.
“January turned out to be a very healthy month for several automakers, with GM, Honda and Subaru all posting net revenue gains of over 20%,” said Eric Lyman, vice president of industry insights for TrueCar.
“With consumer spending rising at the highest rate since 2006, consumer sentiment at a decade high and low gasoline prices we’re bullish on automakers’ total revenue for the year. We project a 4.8% increase from last year, reaching an astounding $553 billion in new vehicle revenue.”
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn.
He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe.
Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap.
AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks.
Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.
