The year finished strong for automakers, particularly those selling pickups and SUVs. In December, strong demand helped set an annual record of 17.5 million vehicles sold in the United States in 2015.
Gautham Nagesh and John D. Stoll of The Wall Street Journal had the day’s news:
Three years ago, Lili Rodriguez gambled when she transferred from General Motors Co.’s small-car factory in Lordstown, Ohio, to GM’s plant in north Texas making full-size sport-utility vehicles.
As the U.S. auto industry was on the mend after a near-financial collapse in 2009, low-cost passenger cars like Lordstown’s compact Chevrolet Cruze were driving its recovery. With the national average for a gallon of gasoline costing about $3.50 at the time of Mr. Rodriguez’s move, sales of Arlington’s full-size SUVs were declining.
The tables have turned for the U.S. auto industry and Arlington is among the biggest winners. GM is committing $1.4 billion to upgrade the factory, part of tens of billions in U.S. capacity investments planned for the next several years by Volvo Car Corp., Ford Motor Co., Daimler AG and other car makers.
Light-vehicle sales are on track to hit a record in 2015, and an increasing bulk of those units are hulking highly-profitable models like the Chevrolet Suburbans, Tahoes, Cadillac Escalades and GMC Yukons that roll off an Arlington assembly line running six days a week, building 16.5% more vehicles through the first 11 months in 2015 than in the same period a year ago. GM posted record profit in the third quarter; with its SUV plant—one of the most profitable auto factories in the world—contributing much of the earnings.
The development has helped further insulate Texas’ economy at a time when its energy industry is under pressure. While low oil prices have hurt the state’s economy, most Lone Star state cities are holding employment steady or gaining due to a diversified job market, including more openings in auto factories owned by GM, Toyota Motor Corp. and parts suppliers.
Nearly 5% of light trucks built in the U.S., were the 300,000 full-size SUVs made in Arlington. The factory’s revival has encouraged Ms. Rodriguez to put down roots here. “Texas is my home now,” she says.
Bill Vlasic of The New York Times broke down the numbers for each major automaker:
G.M.’s chief economist, G. Mustafa Mohatarem, said favorable economic conditions should propel further gains in the year ahead.
“The single most important pieces are the ongoing gains in employment and the growth in personal income,” he said. “When you add in lower energy prices, it’s easy to see why consumer spending is strong.”
Ford Motor, the second-biggest auto company in the United States, said it sold 237,000 vehicles in December, which was an 8.3 percent increase over the same month a year earlier.
While sales of Ford’s cars slipped about 5 percent during the month, those of its trucks and S.U.V.s rose nearly 13 percent. Leading the way were two of its biggest sellers: the F-Series pickup, which posted about a 15 percent gain, and the Explorer S.U.V., which increased by 17 percent.
Fiat Chrysler Automobiles reported that its December sales jumped 12.6 percent to 217,000 vehicles. The company’s Jeep division was a stellar performer, with an increase in sales of more than 40 percent.
All three of the major Japanese auto companies had strong months as well.
Toyota Motor said it sold 238,000 vehicles in December, which was a 10.8 percent improvement from the same month a year earlier.
Honda Motor reported a sales increase of about 10 percent, and Nissan Motor said its sales had soared nearly 19 percent. Both companies have done extremely well with new, small S.U.V.s — commonly called crossovers — that appeal to younger buyers.
The year ended poorly for Volkswagen, which reported an overall sales decline of 3.4 percent for December. Sales of the company’s core Volkswagen brand vehicles — which are at the center of the emissions crisis — slid more than 9 percent in December compared with a year earlier.
The bright spot for Volkswagen continued to be its Audi luxury brand, which reported a 6 percent improvement in sales.
The Associated Press released a chart breaking down the sales figures:
