U.S. Car Sales Poised to Set New Record

Car and light truck sales in the U.S. appear likely to reach 17.5 million units in 2016, surpassing last year’s record total by about 5,000 units, according to LMC Automotive and J.D. Power. The researchers expect December sales to grow 1% to 1.6 million vehicles.

Retail volume, which ignores fleet sales, is likely to slip 1% to 14.1 million units this year. December retail sales are on track to grow about 1% to 1.3 million vehicles.

LMC and Power say rising inventories and sales incentives signal a peak in demand.They say carmakers face lower profits in 2017 unless they maintain good production and pricing discipline. LMC forecasts that total light-vehicle sales next year will shrink by about 25,000 units.