1 week Ago By Tom Ozimek
Ford and General Motors (GM) have reported their highest U.S. sales figures in five years, each achieving significant growth in 2024 driven by replenished inventories and strong demand for both electric and traditional vehicles.
The automaker remained the leader in full-sized pickups, marking its fifth consecutive year at the top in this category, with 2024 sales reaching their highest since 2007. GM also celebrated 50 straight years as the top seller of full-size SUVs. Electrified vehicles—including electric, hybrid, and plug-in hybrid models—were a key growth driver, with sales increasing 38 percent year over year to 285,291 units.
The F-Series pickups continued to dominate, with sales rising 2 percent to 765,649 units, maintaining their position as America’s best-selling truck series. In the fourth quarter, Ford posted an 8.8 percent year-over-year sales increase, bolstered by strong demand for electrified vehicles, which saw quarterly growth of 22.
3 percent. Internal combustion also showed steady gains, rising 6.8 percent.
The group expects continued progress on the inflation front to drive further interest rate cuts by the Federal Reserve, which would improve vehicle affordability by lowering borrowing costs. Wage growth could also be another tailwind for sales growth if unemployment levels stay in check. “With growing new-vehicle inventory and improving affordability, we believe 2025 will be the best year for the market since 2019, with new-vehicle sales reaching 16.
3 million units, an increase of 3 [percent] from 2024,” the analysts wrote in the forecast. “Profitability will continue to be squeezed, but the consumer and economy will be healthy and supportive of growth.” “Unfortunately, the new vehicle affordability issues that coalesced to constrain auto-demand levels for much of 2024 will not be resolved quickly in 2025,” Chris Hopson, manager of North American light vehicle sales forecasting at S&P Global Mobility, said in a statement.
“Vehicle pricing levels are expected to decline, but remain high; interest rates are expected to shift further downward, but inflation levels are anticipated to remain sticky, and new vehicle inventory should also progress, but careful management is expected too. Combined with an uneasy consumer, we project this translates to mild growth prospects for U.S.
auto sales.”.
