DETROIT -- U.S. auto sales appear to have lagged in January, although the slowdown could be temporary.
January is typically the weakest month of the year for U.S. auto sales. But strong consumer confidence, low gas prices and good deals on new vehicles should help sales speed up once the weather warms and buyers get their tax refunds. While sales aren't expected to top last year's record of 17.55 million, they're still expected to come in at historically high levels.
One X-factor is President Donald Trump. Promised tax cuts and infrastructure spending could increase demand for new vehicles. But his threatened taxes on vehicles imported from Mexico could make some new cars more expensive. Mexico imported nearly 2 million vehicles to the U.S. last year.
"If prices go up there has to be some sort of impact," said Alec Gutierrez, an analyst with Kelley Blue Book. "This is a price-sensitive industry."
Sales at General Motors, which sells the most vehicles in the U.S., fell 3.8 per cent from last January, while Ford's sales were down 1 per cent. Toyota and Fiat Chrysler both saw 11-per cent declines. Nissan's sales rose 6 per cent thanks to strong truck and SUV sales, while Volkswagen's sales jumped 17 per cent as the sting from its diesel cheating scandal began to fade.
Other automakers report sales later Wednesday.
ALG, an automotive forecasting firm, predicts overall sales will be down 1.5 per cent from last January to 1.1 million.
Winter weather and holiday debts typically keep buyers away from car dealerships in January. This year, the hangover could be even more acute, since a strong December capped off a record year for the industry.
Those who went shopping last month could find some good deals. As auto sales slow after seven straight years of increases, automakers are increasingly desperate to make a deal. Incentive spending averaged an estimated $3,635 per vehicle in January, up 21.6 per cent from a year ago, ALG said. Car shopping site Edmunds.com said 10 per cent of all new car loans in January had zero-per cent financing.
Automakers said:
-- General Motors Co.'s sales fell 3.8 per cent to 195,909. GMC brand sales were up slightly but Buick, Cadillac and Chevrolet all saw declines. GM sold 1,162 Chevrolet Bolts in January, one of the first months the new all-electric car was on sale. Sales of its bestseller, the Chevrolet Silverado pickup, dropped 6 per cent.
-- Ford Motor Co.'s sales dropped 1 per cent to 172,612. Ford brand sales were off 2 per cent but Lincoln luxury brand sales jumped 22 per cent on strong sales of small SUVs. Sales of Ford's bestseller, the F-Series pickup rose 12.5 per cent as new heavy-duty trucks hit the market.
-- Fiat Chrysler's sales fell 11 per cent to 152,218. The company's Jeep, Chrysler, Dodge and Fiat brands all saw declines. Alfa Romeo sales were up thanks to the new Giulia sedan while Ram sales rose 5 per cent on demand for trucks and commercial vans. SUV sales were a continuing strength; sales of the Jeep Grand Cherokee SUV were up 24 per cent for the month.
-- Toyota Motor Corp.'s sales dropped 11 per cent to 143,048. Sales of the Camry sedan, the company's perennial bestseller, plummeted 24 per cent after Toyota showed off a new version that will go on sale later this year. Sales of the hybrid Prius were down 16 per cent, hurt by low gas prices.
-- Nissan Motor Co.'s sales rose 6 per cent to 112,319. Nissan brand sales were up 3 per cent while luxury Infiniti sales jumped 36 per cent thanks in part to the new Q60 coupe. The company said its car sales dropped 9 per cent but its truck and SUV sales were up 24 per cent, further evidence of consumers' growing preference for bigger vehicles.
-- Volkswagen brand sales rose 17 per cent to 23,510. Volkswagen likely got a bump from diesel owners who sold their cars back to VW as part of a nationwide settlement. As of Jan. 14, VW had processed 96,000 buyback and lease termination offers. At least some of those buyers likely opted for a new, non-diesel Volkswagen, Gutierrez said.
