The Industry's Leading Source For F&I, Sales And Technology

Special Finance®

December Total Sales to Increase 7 Percent, J.D. Power and Associates Says

December 23, 2009

December new-vehicle retail sales are expected to increase substantially compared with one year ago, indicating the continuation of the industry’s recovery, according to J.D. Power and Associates.

December new-vehicle retail sales are expected to come in at 839,600 units, which represent a seasonally adjusted annualized rate (SAAR) of 9.1 million units. Although fleet sales have been rebounding from historic lows earlier this year, December’s fleet level is projected to be down 10 percent from one year ago. As a result, total sales for December are projected to come in at 1,029,600 units, up 7 percent from December 2008.

“The market is continuing to improve, with the relative strength of December sales supporting a year-end rally,” said Gary Dilts, senior vice president of global automotive operations at J.D. Power and Associates. “The December selling rate is tracking at 11.2 million units—up nearly 1 million units from one year ago—which sets up 2010 for further recovery.”

J.D. Power and Associates U.S. Sales and SAAR Comparisons – December 2009

 

December 20091

November 2009

December 2008

New-vehicle retail sales

839,600 units

(12% higher than December 2008)2

585,135 units

697,633 units

Total vehicle sales

1,029,600 units

(7% higher than December 2008)

745,284 units

892,482 units

Retail SAAR

9.1 million units

8.7 million units

8.2 million units

Total SAAR

11.2 million units

10.9 million units

10.3 million units

1Figures cited for December 2009 are forecasted numbers based on the first 17 selling days of the month.

2The percentage change is adjusted based on the number of selling days (28 days vs. 26 days one year ago).

On the heels of the worst economic environment since the Great Depression, the automotive market has recovered from its low point in March 2009, and has been outperforming expectations since October. Given the more robust pace and a strong December close, 2009 is projected to come in higher than previously expected, with total sales at 10.4 million units and retail sales at 8.7 million units.

“While the industry hasn’t yet received a clean bill of health, fixed costs have been trimmed at all levels, allowing for profitability—even at a reduced selling rate,” said Jeff Schuster, executive director of global forecasting at J.D. Power and Associates. “The industry has an opportunity in 2010 to build on a series of small victories—such as improved pricing and appropriate inventory levels—to drive a stronger recovery.”

J.D. Power and Associates is maintaining its 2010 forecast at 11.5 million units for total sales and 9.5 million units for retail sales.

Your Comment

Please note that comments may be moderated. 
Leave this field empty:
Your Name:  
Your Email:  

CLOSE [X]

READ NEXT

Florida Orders Four Companies to Stop Selling VSCs

The Florida Office of Insurance Regulation issued on Dec. 21 an order to National Automotive Services Inc.; Warranty Financial Inc. a/k/a Warranty Financial O.R.G. Inc.; Warranty USA; and Warranty Services to cease and desist transacting the unauthorized marketing and selling of motor vehicle service agreement products in the state.