I am back from the break--just in time to look at the December sales results reported yesterday.
It seems like every manufacturer had sales events running through January 3rd. (Although the deals on offer might not have been as sweet as some customers were hoping for...)
Results came in just a bit higher than expected with a SAAR of just under 12.5m. Considering the sales event hype, this is right in line with what we saw in October and November. Seems like the recovery is taking another breather.
Two things did jump out from the December results:
1/ GM, Ford and Chrysler showed year over year cuts in incentives. Good for profits, but bad for consumers looking for deals. Despite what amounts to price bumps, all three reported share gains.
2/ Along with new products, a contributor to these share gains is a continuation of the swing to full size trucks and SUVs. (Also good for profits.)
An obvious questions, now that gas prices are on the march again, is how much longer can this continue before full-size vehicle sales start to slide?
Although it is true that consumers become less sensitive to fuel price swings as the fuel efficiency of their vehicle improves, I would say we have to be getting close.
Here our monthly sales video. (Apologies for my voice—I am still getting over a cold…)