NY Times

(January 8, 2024) The U.S. auto industry rebounded in 2023 with many car companies reporting double-digit sales gains, marking a return to normalcy for a sector that has been on a roller coaster since the start of the pandemic. The industry's results results were boosted by pent-up demand and better availability on dealership lots. A six-week United Auto Workers strike this past fall did little to damp the industry’s momentum and electric-vehicle sales continued to rise, albeit at a slower rate than in the previous year.

Industrywide sales of new cars in the U.S. reached 15.5 million vehicles in 2023, a 12.4% increase from the prior year, according to an estimate from research firm Wards Intelligence.

Of those automakers that reported sales figures Wednesday, General Motors said it sold 2.6 million vehicles in the U.S. in 2023, retaining its crown as the nation’s largest car seller. Those sales were a 14% increase over the prior year.

Toyota's  U.S. sales increased nearly 7% in 2023 to about 2.3 million, lifted by sales of plug-in models, while American Honda Motor recorded a 33% increase for the period. Stellantis, the parent company of Chrysler, Jeep and Ram, was one outlier, reporting a 1% decline in U.S. sales last year.

The Toyota brand's biggest sellers posted mixed results last month: Camry, down 1.9 percent; Corolla, up 30 percent; RAV4, up 40 percent; Corolla Cross, up 33 percent; Tacoma, down 6.6 percent; and Tundra, up 25 percent.

Ford Motor's fourth-quarter sales rose 1 percent, with the Ford division up 0.6 percent and Lincoln advancing 8.8 percent. Ford CEO Jim Farley called 2023 "a year of challenges, from a labor strike to supply issues," but said the automaker is "spring-loaded for 2024" with new versions of Ford's most popular pickups and utility vehicles, notably the F-Series, Explorer and Expedition, as well as the redesigned Super Duty and Mustang that launched in 2023.



Supply-chain snags, manufacturing disruptions and poorly stocked dealerships have weighed on new-vehicle sales since the beginning of the Covid-19 health crisis, leading to the industry’s worst sales year in more than a decade in 2022.

The UAW strike dented production at the Detroit Three last fall, but because they had built up supplies heading into talks, it had limited impact on sales.

Still, labor rates are going up for many automakers. The new UAW contracts in Detroit secured double-digit pay increases and other benefits for auto workers that are poised to add billions of dollars in new costs for GM, Ford and Stellantis. Toyota, Honda and several other non-unionized rivals have also boosted pay for their workers, in the wake of the union deals.

Electric-vehicle sales in the U.S. continued to rise in 2023, up 48% for the first 11 months of the year, according to Motor Intelligence. But the pace of growth also slowed from the prior year, resulting in several car companies walking back or delaying some of their planned investment in EVs last year.

High sticker prices on EVs, along with a lack of public chargers and fears of getting stranded, have made buyers hesitant to make the switch from a gas-engine vehicle, dealers and analysts say.

Electric-car pioneer Tesla on Tuesday reported global vehicle deliveries of about 1.8 million EVs worldwide in 2023, slightly ahead of analysts’ expectations. However, despite steep price cuts, its growth rate slowed last year and Chinese automaker BYD surpassed it in the fourth quarter as the world’s largest EV seller.

Honda Motor Co.'s rebound continued, with December volume surging 31 percent. Sales increased 33 percent at the Honda brand and 23 percent at Acura. For the year, the Honda brand's deliveries jumped 33 percent to 1.16 million, just short of the company's goal of 1.2 million.

Hyundai's U.S. sales rose for the 17th consecutive month, and Kia set an annual record. Hyundai said December deliveries rose 4.3 percent to 75,164, helping to produce record fourth-quarter volume of 206,048, up 5.1 percent, and record annual sales of 801,195, an increase of 11 percent.

Kia snapped a 16-month streak of sales increases with December volume of 60,275, down by 147 vehicles, but the company easily set an annual sales record of 782,451, up 13 percent from 2022. Two of Kia's top sellers — the Sportage and Telluride crossovers — posted lower sales in December.

Genesis racked up its 14th straight monthly gain, with December volume rising 10 percent to 6,803. The luxury brand's U.S. sales rose 23 percent to an all-time high of 69,175 last year.

At Nissan Motor Co., fourth-quarter sales advanced 5.6 percent, with volume rising 4.8 percent at the Nissan division and 17 percent at Infiniti.

Subaru's December volume rose 1.8 percent, and 2023 deliveries jumped 14 percent.

Double-digit gains in Atlas, Atlas Cross Sport, Jetta and ID4 sales helped Volkswagen to a 40 percent fourth-quarter gain and a 9.3 percent increase for 2023.

Mazda's sales rose 45 percent to a December record of 39,518, with 2023 volume advancing 23 percent to 363,354.

Sources: Automotive News, manufacturers