Hot sales, higher prices and a big run-up in revenue - Automotive News
It was the best January since long before the recession as new light-vehicle sales rose 14 percent to 1,152,480. But it was not a record. What was a record was all the revenue those sales generated for the industry. With the lift-off of the luxury, SUV and crossover segments, average transaction prices have been climbing steadily -- and just got a big boost with the collapse of gasoline prices. Carmakers can expect the run-up in revenue to continue in 2015. TrueCar President John Krafcik forecasts a 2. 8 percent gain in unit sales to 17 million this year, slightly above the industry consensus of 16. 9 million. Last month's higher transaction prices -- what buyers pay after incentives are applied -- came with a 16. 7 million annual selling rate, which was up from 15. 3 million a year before. "Demand for trucks and crossovers is really driving our business," said GM sales boss Kurt McNeil. He described GM's launch of the Chevrolet Colorado and GMC Canyon midsize pickups last fall and its entry into the small-crossover market with the Buick Encore and Chevy Trax as "well-timed. Last month, the truck boom helped drive GM's average transaction price per vehicle up $2,400 from a year earlier, to $34,800 through. Source: www.autonews.com
