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General Motors and Ford both reported their best year for U.S. sales since the coronavirus pandemic disrupted the auto market, driven by lower interest rates, higher inventories and stronger shoppers. Reported.
GM will sell 2.7 million vehicles in the U.S. in 2024, and Ford will sell 2.1 million vehicles, representing a 4% increase in sales for both companies compared to 2023. The total was the highest for both companies since 2019.
The pace of auto sales picked up at the end of the year due to lower interest rates and improving inventories, as well as less uncertainty surrounding the U.S. election that kept consumers on the sidelines for months.
“It’s just made it easier to buy a car, and that’s definitely helped sales,” said Jessica Caldwell, executive director of insights at car research firm Edmunds.
Data group Cox Automotive had expected December sales to be faster than the average for the first nine months of the year. After car scrap rates fell earlier this year, industry observers wondered whether consumers were waiting to make a decision or whether weak sales signaled an economic downturn. .
New car loan interest rates peaked in June, Caldwell said, and although the decline has been slow, November’s 6.8% was the lowest since December 2022.
The number of cars available for purchase is increasing. Inventory has increased since shortages emptied dealer lots during the pandemic, and discount rates have increased along with the number of cars and trucks sold.
The Kelly Nissan dealership in the Chicago suburbs has experienced both downs and booms. Ryan Kelley, a dealer and director of the Chicago Automobile Trades Association, said salespeople began noticing in August that longtime customers were shying away from new car deals. Dealers were still selling cars, but “it didn’t feel like a normal August, September, October.”
Not all automakers saw sales increase. Tesla’s car sales in 2024 will be lower than in 2023, marking the first decline since 2011. Elon Musk’s company faces slowing demand for electric vehicles in the U.S. even as its core products age and the billionaire’s politics draw scorn from some potential buyers. are.
But with sales growth in the final quarter, Cox Automotive Chief Economist Jonathan Smoak said, “Not only did we survive another year, but we ended up doing a little better than expected.” said.
