Strong truck volume drives U.S. sales up 1.2%

U.S. light-vehicle sales, behind a 9.4 percent rise in light-truck demand and fatter discounts, edged up 1.2 percent last month over November 2014, putting the industry 1,575,852 vehicles short of the annual record set in 2000, with a month remaining.

Hyundai-Kia set the pace in November as most automakers rode U.S. light truck demand to sales increases.

The gains among major automakers fell within a narrow range of 0.3 percent at Ford Motor Co. to 3.8 percent at Nissan Motor Co. Hyundai-Kia’s 7.1 percent increase -- driven by a 12 percent gain at the Hyundai brand -- stood out in percentage terms. Only American Honda and Volkswagen Group posted a decline in volume.

The final industry tally for November was delayed until Wednesday because Mercedes-Benz, citing a “systems malfunction,” reported results a day after other automakers.

Overall industry volume topped expectations for a flat or slight rise in volume, according to several analysts.

The seasonally adjusted annual sales rate came in 18.16 million, marking the third straight month of a SAAR above 18 million. The strong November results will help push the industry closer to topping the U.S. sales peak of 17.4 million, set in 2000.

"The auto industry is on track to exceed 2015 expectations," said Bill Fay, group vice president and general manager for the Toyota division.

To set a new high for annual U.S. sales, the industry must see volume rise 4.6 percent this month compared to December 2014. But because December 2015 has 2 extra selling days compared to a year ago, that translates to 1,717 fewer vehicles needed per selling day than a year ago.

Through November, deliveries across the industry rose 5.4 percent to 15.8 million, spurred by rising incentives, record leasing rates, pent-up demand, and favorable financing and credit availability.

Hyundai generated sales of 60,007 vehicles, up 12 percent, for its best-ever November. Kia sales nudged upward 1.4 percent to 45,553.

Nissan Motor Co. rode strong demand for the Rogue crossover to a 3.8 percent increase. At Toyota Motor Corp., volume rose 3.4 percent. FCA extended its streak of monthly advances to 68 with a 3 percent rise. GM was up 1.5 percent, while Ford Motor Co. eked out a 0.3 percent gain.

Volkswagen, citing a stop-sale order on 2.0-liter and 3.0-liter diesel models pending a review by U.S. and California regulators for emissions compliance, said November deliveries dropped 25 percent to 23,882. It is the steepest monthly decline for the VW brand since the start of the Great Recession.

Honda Motor Co. fell 5.2 percent to 115,441 vehicles -- with Acura plunging 18 percent to 12,244 deliveries. Sales at the Honda brand slipped 3.5 percent.

The increases for major automakers come in comparison to a strong November 2014 that also had two more selling days than last month.

Automaker tallies

At Fiat Chrysler, deliveries rose 20 percent at Jeep and 0.6 percent at Ram. They dropped 7.5 percent at Dodge, 12 percent at the Chrysler brand and 2.6 percent at Fiat. Overall, FCA’s truck volume rose 11 percent while car sales slid 22 percent.

FCA’s incentives averaged $3,573 last month, an increase of 13 percent over November 2014, TrueCar estimated.

At General Motors, a 4.8 percent rise at Chevrolet offset a 17 percent drop at Buick and the first decline at GMC in a year. Cadillac was up 1.8 percent.

GM’s said its average transaction price hit a record $35,800 last month, up about $740 from October 2015 and an increase of about $580 year over year. The company's incentive spending was 10 percent of ATP, down 1.6 percentage points from October 2015 and down 1.2 percentage points year over year.

At Nissan, volume rose 3.9 percent at the Nissan brand and 2.6 percent at Infiniti.

Deliveries rose 0.4 percent at the Ford division but slipped 2.4 percent at Lincoln. Ford said lower incentive spending prompted a $3,800 boost in average transaction prices compared with a year ago.

“We saw strong customer demand for our cars and SUVs with the latest technology and sold a very rich mix in November,” Mark LaNeve, Ford's head of U.S. sales and service, said in a statement. “F-Series and commercial vans also were very strong, with an 18 percent gain for the month and our best November sales performance for Ford Trucks in eight years."

Among other automakers, sales rose 7 percent at Mazda, 1.8 percent at Subaru and 3.6 percent at Mitsubishi. At Mini, deliveries slid 11 percent.

Among luxury brands, volume rose 3.2 percent at BMW, 91 percent at Volvo, 79 percent at Land Rover, 0.4 percent at Audi and 6.8 percent at Lexus.

But deliveries slipped 12 percent at Mercedes-Benz, 5.3 percent at Porsche, 15 percent at Jaguar and 18 percent at Acura.

Holiday deals

Many automakers, like other retailers, launched year-end holiday deals in November.

Automakers spent 6 percent more last month on incentives than they did a year ago, according to TrueCar Inc., a vehicle pricing research firm, with the average discount topping $3,000 a vehicle.

On Monday, Bill Estes, an Indianapolis-area dealer, was advertising $13,500 off a Ford F-150 pickup, $7,000 off the Ford Escape, 20 percent cash back on the Chevrolet Malibu and 0 percent for a 72-month loan on a Chevrolet Silverado.

For several months now, because of weak car demand, some of the best deals have been available on midsize and large sedans, and hybrids.

Among other deals pitched by dealers and automakers at the end of November:

• Up to $4,000 cash back on a 2015 Ford Taurus

• $3,775 off MSRP on a 2015 Nissan Altima

• A 2015 Dodge Dart with $3,000 cash back

• $5,000 cash back on the Nissan Leaf

• $4,000 allowance on Buick Regal

• 20% off the MSRP on a 2015 Buick Lacrosse

• $2,250 or 0% APR for 60 months and $500 cash on the 2015 Toyota Prius.

Rick Glenn, director of internet sales at Findlay Toyota in Henderson, Nev., said the slump in car demand across the U.S. hasn’t been the case in the Las Vegas area. The dealership sold more than 100 Camrys in November and the Prius is “still attractive” to buyers in the region, he said.

But light trucks such as the Toyota Highlander and 4Runner remain hot in southwest Nevada.

Deliveries of the Tacoma, benefitting from $1,750 off the MSRP, have been “on fire,” with Glenn citing advertising that Toyota airs during NFL games on Sunday.

“They hit a home run with the redesigned Tacoma,” he said, adding it was smart to “advertise to that demographic” in the greater Las Vegas region.

Gabe Nelson and Nick Bunkley contributed to this report.