Motor vehicles, model year 1992 - sales of new cars and trucks

Survey of Current Business, Oct, 1992 by Larry R. Moran

Imported cars. - sales of imported cars decreased to 2.1 million in the fourth quarter of 1991 and edged up to 2.2 million in the first quarter of 1992; they were unchanged in the second quarter and decreased to 2.0 million, the lowest level in more than 10 years, in the third quarter. Inventories of imported cars changed little in the fourth quarter of 1991 and decreased in the first quarter of 1992; they decreased more sharply in the second quarter and increased slightly in the third.

New Trucks

Sales of new trucks jumped 9 percent - the largest increase since 1985 - to 4.5 million units in model year 1992 after declining 12 1/2 percent in 1991, 6 percent in 1990, and 1/2 percent in 1989. The 1992 jump was accounted for by increases in the sales of domestic fight trucks and of "other" trucks; sales of imported light trucks declined. The share of total motor vehicle sales accounted for by trucks jumped to a record 35 percent in 1992 after declining to 3 2/2 percent in 1991, the first decline since 1982.

Sales of light trucks increased 9 percent to 4.3 million in 1992 after declining in each of the preceding 3 years.6 The increase was mainly accounted for by sales of sport-utility vehicles, vans, and small pickups. Light trucks, many of which are purchased for personal use, accounted for 94 1/2 percent of total truck sales in 1992, up slightly from 1991.

The strength in 1992 light-truck sales is somewhat surprising because many of the same factors - such as weak growth in DPI, rising unemployment, and falling consumer confidence - that may have weakened car sales also affected light-truck sales.

Sales of domestic light trucks jumped 12 1/2 percent to 4.0 million in 1992 after falling 10 1/2 percent in 1991 and 5 percent in 1990. Sales of domestic-nameplate light trucks increased 11 percent to 3.9 million, and their share of light-truck sales increased to 91 percent from 89 1/2 percent in 1991. The strength in sales of these trucks reflected new-product introductions, quality improvements, and efforts by manufacturers to hold down price increases; in addition, a weak dollar against the yen led to large price increases in imported Japanese trucks. Sales of transplant trucks jumped 76 percent to 0.1 million; their share of light-truck sales increased to 3 percent from 2 percent. In model year 1993 and beyond, Japanese manufacturers plan to introduce more truck models, including larger pickup trucks, into the U.S. market. Initially, these models will be built in Japan, but eventually they will be built in U.S. transplants.

Sales of imported light trucks plummeted 25 1/2 percent to 0.2 million in 1992, continuing a series of sharp declines; these drops, like those of imported-car sales, partly reflected a shift in production from overseas plants to transplants. The imported truck share of light-truck sales fell to 6 percent from 8 1/2 percent.

Sales of "other" trucks increased 3 percent to 0.3 million.(7) Nearly all of these trucks are purchased by businesses. The domestic models' share of total sales of "other" trucks has declined in recent years, to roughly go percent in 1992.