Deutsche Bank On December's Auto Sales: Conditions Still Supportive

Rod Lache of Deutsche Bank commented in a note on Monday that December's U.S. auto sales of seasonally adjusted annual rate of 16.8 million was roughly in-line with a projected 16.9 million rate, while sales and pricing remain strong and conditions remain “supportive.”

According to Lache, pickups and large SUV sales rose by approximately 12 percent to 14 percent year-over-year, while mid-sized cars and CUVs were higher by 8 percent year-over-year and small car sales rose 4 percent year-over-year.

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Lache notes “solid” industry pricing as purchasing conditions such as interest rates remained “supportive.” The analyst adds that based on JD Power data, industry wide average ticket prices rose by $1,072 year-over-year, while industry incentives rose by just $9.

In terms of company specifics, General Motors Company GM performed better than expected with sales increasing 17.0 percent versus the analyst's 7.7 percent estimate. Ford Motor Company's F volume fell by 2.8 percent year-over-year, roughly in-line with the 3.8 percent decline Lache estimated.