Economic Development Futures Journal

Friday, January 06, 2006

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U.S. Auto Sales in 2005: Domestics Losing Ground

While it might not feel like good times in the Motor City, 2005 was the third-best sales year in history, with consumers buying nearly 17 million cars and trucks nationwide.

Despite the strong level of auto sales, this past year will go down in history as a volatile one -- and largely influenced by the shock of $3-a-gallon gasoline during the summer.

Consumers chose fuel-efficient cars and crossovers over SUVs and pickups. Car sales were up 2.1%, and light-truck sales were down 0.8%.

More than half of all purchases were still pickups, SUVs and vans, but car sales haven't outperformed trucks like this for more than 25 years.

Auto sales for the year were down 4.3% at General Motors Corp. and 5.0% at Ford Motor Co. While the Auburn Hills-based Chrysler Group, part of DaimlerChrysler AG, made impressive gains, with a sales jump of 4.5%, Asian competitors made inroads sure to send shivers through Detroit.

Annual sales were up 9.7% at Toyota Motor Corp., boosted by sales of hybrid gasoline-electric vehicles, the popular Camry model, which was the best-selling car in the car-loving United States last year, and Lexus, which was the best-selling luxury brand again last year.

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