U.S. Auto Sales Rise in December, Capping Strong Year--Update

By Michael Ramsey And Michael Calia

Auto makers in December reported a surge in U.S. sales, capping the strongest year since a global financial crisis roiled the industry and prompted some companies to undertake government-brokered restructurings.

General Motors Co. and Fiat Chrysler Automobiles posted double-digit sales gains in December amid low fuel prices, zero-interest financing deals and strengthening consumer sentiment. Auto information service Kelley Blue Book, analysts and other industry trackers projected full-year U.S. sales approaching or exceeding 17 million light-duty vehicles, which would be the highest total in a decade.

GM said sales rose 19% in December to 274,483 light vehicles, vaulted by pickup-truck sales that reached nearly 87,000. For the year, GM sold 2.9 million light vehicles, the company said.

Chrysler said it sold 193,261 vehicles in December and more than two million units for the year, giving the company its best December in a decade and best annual total since 2006. Chrysler benefited from strong sales from its Ram trucks and Jeep sport-utility vehicles.

Ford Motor Co. said light-duty vehicle sales were flat in December, rising slightly to 219,369. The result was held back by intentionally fewer sales to rental-car companies and a limited supply of its best-selling F-150 pickup. Ford sold nearly 2.5 million light vehicles in 2014, down less than 1% from 2013.

December is traditionally a strong month for auto sales as auto makers offer holiday deals and clear out older models. Consumers are currently flocking to showrooms amid low gasoline prices and an improving U.S. job market.

December also marked the highest average transaction prices on record for light vehicles, according to Kelley Blue Book, as the figure grew nearly 3% year-over-year to $34,367. The average price grew 1.6% from November.

At Galpin Ford, a Los Angeles dealership, sales are swift. Galpin already has targeted a 10% sales increase for 2015, aided by new models from Ford, low gas prices and an improving economy. "I definitely know that low gas prices are a consideration," said Terry Miller, the general manager at Galpin. He said his own wife just moved into a Ford Explorer from a small Ford Escape SUV. "Overall, people are more confident," he said.

He said December sales at his dealership were the strongest in memory, also helped by incentives and low rates. "It doesn't hurt when you have zero percent financing for 72 months and $2,000 rebates. It definitely sparks business."

GM said much of its 19% sales increase for December came from retail transactions, while combined pickup-truck deliveries surged 43%. Overall, GM said it sold 274,483 vehicles in December, compared with 230,157 a year earlier. The company said it was its best December since 2007.

Ford truck sales rose 4% in December, with the new F-150 becoming the company's fastest-turning vehicle at dealerships, although overall F-series sales fell slightly for the month. Car sales, meanwhile, declined 1.1%.

Nissan Motor Co. said it sold 117,318 vehicles last month, an increase from 109,758 a year earlier. Much of the increase was due to a surge in car sales, which rose more than 12%. The company's Sentra, Altima and Leaf posted strong gains in the car category. The Japanese company said it set an annual sales record of 1.4 million light vehicles, an increase of 11%.

Japan's Honda Motor Co. said it sold more than 1.5 million vehicles in the U.S. during 2014, the company's second-best total.

The company's U.S. sales last month rose 1.5% to 137,281 vehicles, as growth in truck sales offset a decline in car sales.

Japan's Toyota Motor Corp. said U.S. sales in December rose 12.7% from a year earlier to 215,057 light vehicles, the best for the month since 2005. Toyota's full-year sales came in at nearly 2.4 million vehicles, up more than 6% from 2013. Toyota executives pointed to sales of trucks and SUVs driving the gains. In addition, the auto maker's 25-year-old luxury Lexus brand posted a monthly sales record of 39,879. Sales of the Camry car were up more than 5% in December, eclipsing 31,000 and about 5% to more than 428,000 for the year.

Sales of Toyota's Prius hybrid fell 8% and 12% for the month and year, respectively, amid low gas prices.

Bill Fay, vice president and general manager of the Japanese company's Toyota division, said industry sales were returning to "prerecession levels," adding the company remained "very optimistic there will still be some growth" in sales going forward, even with a slight slowdown.

Auto makers now enter 2015 trying to keep up the improved sales pace. "The 2015 economic indicators remain robust and the fundamentals are poised for a continuation of the momentum we saw in the latter part of 2014," said Ford senior economist Emily Kolinski Morris. She said low fuel prices were boosting consumers' disposable incomes alongside gains in the job market.

The Federal Reserve is poised to raise interest rates later this year, but Ms. Morris and other auto executives said an increase shouldn't crimp auto sales. "We're building in a little bit of an anticipation in the second half of the year that rates might go up, but they're still very low by historical standards," said Toyota's Mr. Fay. "We're in really good shape entering the year from an interest rate standpoint and we'll have to keep a good eye on it as we enter the second half of the year."

Write to Michael Ramsey at michael.ramsey@wsj.com and Michael Calia at michael.calia@wsj.com

Access Investor Kit for Toyota Motor Corp.

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=JP3633400001

Access Investor Kit for Nissan Motor Co., Ltd.

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=JP3672400003

Access Investor Kit for Honda Motor Co., Ltd.

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=JP3854600008

Access Investor Kit for Ford Motor Co.

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=US3453708600

Access Investor Kit for General Motors Co.

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=US37045V1008

Access Investor Kit for Honda Motor Co., Ltd.