Ford and General Motors fuel controversy with 4 percent sales surge in 2024

In the United States, vehicle sales surged during the final quarter of 2024, marking an optimistic end to the year for major automakers like General Motors and Ford. General Motors reported a remarkable 21 percent increase in fourth-quarter sales, translating to over 755,000 cars and light trucks sold, alongside a significant boost in electric vehicles (E.V.s), which more than doubled to 43,982 units. Ford also experienced strong growth, selling over 530,000 vehicles, a nearly 9 percent increase. Notably, this included 30,176 electric vehicles, reflecting a 16 percent rise in the segment. Overall, these figures contributed to each company posting an annual sales increase of just over 4 percent. For the entire year, General Motors sold approximately 2.7 million vehicles, while Ford’s total approached 2.1 million. This uptick in sales comes at a time when consumer sentiment appears favorable, with rising wages, higher vehicle incentives, and improved loan approval rates suggesting a support framework for continued growth in the automotive sector. Industry analyst Cox Automotive has preliminarily estimated that the total automotive market in the U.S. sold around 15.85 million cars and light trucks in 2024, marking a 2 percent rise from the previous year. Cox is predicting an even greater increase for 2025, projecting sales will reach 16.3 million vehicles. This anticipated growth aligns with a broader trend of increasing consumer confidence as socio-economic factors start to favor spending on big-ticket items like cars. Jonathan Smoke, Cox's senior economist, underscored this positive momentum, indicating that the improving economic indicators, including wage growth and rising consumer confidence, position the industry well for the upcoming year. While traditional automakers like General Motors and Ford conducted significant sales in the electric vehicle market, there are also ongoing challenges. Recently, Tesla, the leader in electric vehicle sales, announced its first-ever decline in worldwide sales for 2024, attributing the downturn to increased competition. However, the company ended strong, reporting record sales figures for the fourth quarter, which may indicate that the market is becoming increasingly competitive but also expanding overall. As more brands enter the electric vehicle space, the automotive industry's landscape will continue to evolve, potentially opening new growth avenues for both established and emerging players.