U.S. auto sales reached record in 2016, auto makers say

U.S. auto sales hit a fresh record in 2016, according to estimates released on Wednesday, even as the industry employs more incentives to get Americans to buy vehicles.

Auto sales reached 17.5 million last year, General Motors said as it reported its own strong December, reporting a 10% sales rise.

Its rivals had a less stellar month: Chrysler owner FCA reported a 10% drop, and Ford Motor Co. saw a 0.3% gain. Ford estimates industry sales reached 17.8 million.

Transit planners say it's only a matter of time and money until self-driving cars travel on "smart-roads" that communicate directly with vehicles to help them move as quickly and safely as possible. Photo: VDOT

Still, the Big Three managed to sell at rates near or better than last year’s strong levels. Low gas prices, steady jobs growth and improving consumer confidence have helped the industry. GM and Ford are forecasting sales at or near record levels in 2017.

Motor vehicle loans rose to a record $1.1 trillion in the third quarter, and the delinquency rate for subprime auto loans has been on the rise. And while consumer confidence has been reaching multiyear highs, the share who say it is a good time to buy a car has actually dropped, in what may be a response to higher interest rates.

The Federal Reserve last month made its second interest rate hike in a decade, as it promised more hikes this year.

Source: Manufacturers