(December 20, 2012) WESTLAKE VILLAGE, Calif. — December's new-vehicle retail selling rate remains robust near the close of 2012, with potential buyers unfazed by the current level of economic uncertainty generated by the fiscal cliff negotiations in Washington, D.C., according to a monthly sales forecast developed by J.D. Power and Associates' Power Information Network (PIN) and LMC Automotive.

December new-vehicle retail sales are expected to come in at 1,152,500 units, which represent a seasonally adjusted annualized rate (SAAR) of 12.2 million units. December's selling rate remains strong and is 500,000 units higher than the expected 2012 full-year rate. Retail transactions are the most accurate measurement of true underlying consumer demand for new vehicles.

Luxury-vehicle sales are on pace to account for 16 percent of all retail vehicles sold in December, an increase from 15.3 percent in November 2012 and 14.8 percent in December 2011. Luxury share in December is the highest in 2012 and the highest since December 2009, when it reached 16.2 percent.

"Luxury sales always do well this time of the year, but December is turning out to be a great month," said John Humphrey, senior vice president of global automotive operations at J.D. Power and Associates. "New and re-designed vehicle introductions, along with enhanced incentive activity, have been key drivers of the recovery in the luxury market."

Total light-vehicle sales in December 2012 are projected to increase 14 percent from December 2011, with volume at 1,358,600 units. Fleet mix is expected to reach 15 percent, which is consistent with a managed supply and demand market, and is the sixth consecutive month below 20 percent.

J.D. Power and LMC Automotive U.S. Sales and SAAR Comparisons

Based on strong sales in November and early December, LMC Automotive is edging up its 2012 forecast for total light-vehicle sales in the United States to 14.5 million units from 14.4 million units and maintaining the forecast for retail sales at 11.7 million units. The forecast for 2013 remains 15 million units for total light-vehicles and 12.2 million for retail sales, but represents a slower growth rate of four percent from 2012.

"The U.S. light-vehicle sales market continues to be a bright spot in the tremulous global environment," said Jeff Schuster, senior vice president of forecasting at LMC Automotive. "The only major roadblock ahead for the U.S. market is the fiscal cliff. Assuming that hurdle is cleared, 2013 is one step closer to a stable and sustainable growth rate for autos, with volume above the 15 million unit mark."