The December 2010 US new-vehicle retail sales pace is significantly beating expectations, according to new data from J.D. Power and Associates. December 2010 new-vehicle retail sales are expected to come in at 936,300 units, which represents a seasonally adjusted annualized rate (SAAR) of 10.8 million units. This represents a 19% increase from a SAAR of 9.3 million units one year ago.
“Even with the possibility that sales in the third week of December may be affected by the recent winter storms, the strength in sales during the second week is expected to continue through the rest of the month,” said Jeff Schuster, executive director of global forecasting at J.D. Power and Associates. “As a result, it appears that 2010 will end on a high note.”
Total December Light-Vehicle Sales Expected to Reach 1.1M Units
Total light-vehicle sales for December 2010 are expected to come in at 1,133,000 units, which is 14% higher than about 1.03 million in December 2009. Fleet sales are projected to decrease in December 2010, however, with volume expected below 200,000 units down 3% from December 2009. Fleet share of total sales in December is expected to be at 17%, the lowest level all year.
Total 2010 US Light-Vehicle Sales Expected to Hit 11.6M Units
Given a stronger-than-expected retail performance in December, J.D. Power and Associates has increased its retail sales forecast for the year to 9.2 million units (from 9.1 million units). The forecast for total light-vehicle sales in 2010 has also been adjusted to round up to 11.6 million units (from 11.5 million units).
For 2011, J.D. Power’s forecast remains at 10.4 million units for retail sales and 12.8 million units for total sales. These represent respective year-over-year increases of 13% and 10% from current 2010 estimates.
Total December Light-Vehicle Sales Expected to Reach 1.1M Units
Total light-vehicle sales for December are expected to come in at 1,133,000 units, which is 14% higher than December 2009. Fleet sales are projected to decrease in December, with volume expected below 200,000 units, down 3% from December 2009. Fleet share of total sales in December is expected to be at 17 percent, the lowest level all year.
2010 North American Production Up Almost 40%
Nearly 11 million vehicles have been manufactured in North America year-to-date through November 2010. With December projected at 800,000 units, 2010 production is expected to end at 11.8 million units, up 38% from 8.5 million units in 2009.
Of the three countries comprising North America, Mexico is expected to post the strongest year-over-year increase, with production up nearly 50% to 2.2 million units. J.D. Power analysis indicates Mexico is benefiting from a strong increase in truck production from the Detroit Three, as well as the addition of the Ford Fiesta to production. Canadian production is expected to be up 39% to 2.1 million units, while volume in the US is projected to be up 35% to 7.6 million units.
Vehicle inventory at the beginning of December 2010 was steady, compared with November 2010, at 67 days’ supply. In comparison, the days’ supply is up five days from the level at the beginning of December 2009 (62 days). Currently, car inventory is outpacing truck inventory at a 71-day supply, compared with a 64-day supply in December 2009.
The outlook for production in North America in 2011 has been increased slightly to 12.7 million units (from 12.6 million units), which is 8% higher than in 2010.
White/White Pearl Top Car Color in North America
In North America, white/white pearl retained its lead among auto paint color preferences for the fourth year in a row, with 21% popularity share, according to recent DuPont data. DuPont experts say this largely reflects the preferences of the fleet and light truck and sport utility vehicle (SUV) markets in North America. Black/black effect beat silver by one percentage point for the number two spot, with 18% popularity.
Black/black effect led the compact/sport and luxury/luxury SUV categories in North America, while white/white pearl led the truck/SUV category. Silver led by just one percentage point on black/black effect for the intermediate/crossover utility vehicle (CUV) segment in the North American market.
About the Data: J.D. Power and Associates gathers real-time transaction data from more than 8,900 retail franchisees throughout the US and is the source of the enclosed charts.
