U.S. Auto Sales Top 17 Million for Third Year

This despite a 1.8% decline in automobile sales for the first time since 2009.

ATLANTA January 5, 2018; In the United States, automobile sales once again slid past the 17 million mark for the third consecutive year, according to IHS Markit, Marketing Daily reports. “This is the first time this has happened since the inception of the industry more than 100 years ago,” said Tom Libby, manager of loyalty and industry analysis for IHS Markit.

However, U.S. auto sales dropped 1.8% last year, but auto manufacturers had a strong December performance. Although 17 million units sold equals a good year for the industry, last year marked a drop in car sales, said Karl Brauer, executive editor at Autotrader and Kelley Blue Book. “At Ford, for instance, every car model was down in 2017,” he said. “That was also true for Buick, Chevrolet, Chrysler and Dodge. Of Toyota’s 13 car models, 11 were down in 2017. Of Nissan’s 10 car offerings, seven were negative. Five of VW’s six car models were also down, and a similar story carried across nearly every luxury brand.”

Even Honda with its all-new Accord and popular Civic models, had dismal car sales. “This is a paradigm shift in consumer behavior, and the fallout will be reflected over the next few years as automakers make hard choices regarding which model lines will live or die,” Brauer said. “The good news is truck and SUVs sales pretty much counter-balanced the drop in cars, and those models are almost always more profitable for automakers.”

As the market shrinks, automakers have made missteps in products and marketing, said Rebecca Lindland, executive analyst for Kelley Blue Book. “All boats rose the last few years, but now the tide is starting to recede and the seaworthiness of brands is being tested,” she said.

“It’s time for all makers to begin thinking more creatively about appealing to consumers. The products are there, but the messages are getting lost in the marketplace,” Lindland added.