Automotive sales information provider Edmunds, which has an office in downtown Detroit, expects new U.S. vehicle sales in 2020 to surpass 17 million units. It would be the sixth consecutive year that vehicle sales eclipsed the 17 million mark.
In the Edmunds 2020 Automotive Industry Trends Report, analysts forecast that a total of 17.1 million new vehicles will be sold in 2020, matching last year’s tally.
“The auto industry has some decent tailwinds heading into 2020: Strong economic factors such as low unemployment and high consumer confidence are carrying over from last year, finance rates are expected to remain relatively stable, and this is a presidential election year, which historically tends to correspond with a year-over-year lift in new vehicle sales,” says Jessica Caldwell, executive director of industry insights at Edmunds.
Although new vehicle sales are expected to be healthy, Edmunds analysts note that rising prices present some roadblocks for the industry. According to Edmunds data, the average transaction price for a new vehicle in 2019 climbed to an all-time record of $37,183, and prices are only expected to keep rising.
“Prices are shooting up because shoppers are opting for pricey SUVs and trucks packed with more high-tech options than ever before,” says Caldwell. “These increased costs, combined with the discontinuation of more-affordable options like domestic passenger cars, could prompt shoppers to shift their focus to the used market — or delay their purchase altogether.”
The full report, which also includes focuses on the resurgence of hybrid vehicles, the continued decline of car sales, and the increase in, is available at the Edmunds Industry Center.
In other automotive news, General Motors Co. announced today that it is investing a total of $46.7 million in its engine plants Spring Hill, Tenn., and Tonawanda, N.Y.
GM will invest $40 million in the Spring Hill Global Propulsion Systems plant to increase its capacity for 5.3-liter V-8 engines for its full-size truck and SUV programs.
“This investment further solidifies GM’s commitment to our team and jobs for our community,” says Michael Youngs, plant director for GM’s Global Propulsion Systems. “The Spring Hill manufacturing team has a proven track record of successful, high-quality launches, and when our products are in high demand by customers, this team is ready.”
The Detroit-based automaker also is investing $6.7 million in its Tonawanda Engine Plant, which also builds 5.3-liter V-8 truck motors, to upgrade the plant’s production systems.