Cheap gas fuels US car sales
January 6, 2015
Automakers in the US reported strong December sales, driven by dropping gasoline prices that currently stand at less than $2 (1.67 euros) per gallon in many parts of the country - a 34-percent dip compared with a year ago.
General Motors (GM) celebrated its best December in seven years, easily overtaking analysts' expectations with a 19-percent gain to 274,483 vehicles. Ford, however, missed the mark, reporting sales up just 1.2 percent to 220,671. Overall sales for the industry rose by nearly 11 percent to more than 1.5 million vehicles.
Sales of so-called gas guzzlers, which had fallen out of favor with American drivers during the recession, came roaring back in December, with customers appearing optimistic that the days of pain at the pump are long gone.
General Motors saw sales of its Chevrolet Silverado and GMC Sierra pickup trucks soar by 35 percent to 81,273, while Fiat Chrysler Automobiles' reported a 32-percent sales increase of its Ram Truck pickups.
German luxury cars also continue to be popular with US consumers. Daimler reported its best year to date, with sales up by 6 percent compared to 2013. Audi and Porsche can also look back at another record year, while BMW marked a 5-percent sales increase.
Call for caution
However, some analysts cautioned that US car demand was growing at a faster pace than the rest of the economy, accelerated by easy access to credit.
"U.S. auto sales are dancing to a very different (and we believe unsustainable) beat," Adam Jonas of Morgan Stanley said in a research note.
The industry is expected to lose a bit of steam in 2015, with several executives predicting sales of 16.7 to 17 million vehicles.
"Any way you slice it, whether it's 16.7 (million vehicles) or slightly below or above, it's still a very healthy industry," Lexus chief Jeff Bracken said of the new year.
pad/hg (dpa, Reuters)