Volkswagen of America on Friday reported that January sales slid, falling in line with most automakers which were hit by the twin whammy of the government shutdown and polar vortex.
But new vehicles titled in Hamilton County in January jumped 15 percent over the same month a year ago, figures show.
VW posted a 6.7 percent dip in sales, with the number of Chattanooga-made Atlas SUVs sold in January falling 12 percent from a year ago, according to the German automaker.
HAMILTON COUNTY
The number of new vehicles titled in Hamilton County in January jumped 15 percent over the same month a year ago:January 2019: 1,290January 2018: 1,118Source: Hamilton County Clerk’s Office
The downturn in total VW sales to 23,074 vehicles in January came despite increases in the Jetta and Passat sedans. Jetta sales rose 52 percent to 6,875, which was its best January since 2016. Sales of the Chattanooga-made Passat climbed 19 percent in the month to 2,899.
Toyota’s North American sales of 156,021 vehicles fell 6.6 percent from January 2018, the company reported.
General Motors and Ford, which no longer report monthly sales, came in at or below the respective 6.8 percent and 3.4 percent decreases forecast by Cox Automotive, it said.
FCA US posted a 2 percent gain in sales to 136,082, with its Ram brand rising 24 percent, according to the automaker.
American Honda reported a 1.5 percent increase to start off 2019. The CR-V compact SUV’s sales rose 19.8 percent to 29,152.
But Nissan’s U.S. sales for January of 100,741 units resulted in a 19 percent drop.
Still, the Nissan Leaf all-electric vehicle’s sales increased to 717 units, up 378 percent, according to the company that has its U.S. headquarters in Nashville.
Gov. Bill Lee speaks at a roundtable discussion during a visit to Gestamp Inc. on Friday, Feb. 1, 2019, in Chattanooga, Tenn. This was Gov. Lee’s first visit to Chattanooga as governor of Tennessee.On Friday in Chattanooga, new Tennessee Gov. Bill Lee lauded Volkswagen for is planned $800 million investment to build an electric vehicle production plant in the city that’s to add 1,000 jobs.
Lee, speaking during a stopover at the Gestamp auto parts manufacturing plant off Hickory Valley Road, said he’s “very grateful” for the VW action, “particularly that the investment is around the future and their electric vehicles.”
The governor said VW and the state are “in the middle of conversations” about financial incentives to the automaker regarding the project, and he declined to give any numbers about the deal.
Tennessee Economic and Community Development Commissioner Bob Rolfe said this week the incentives will be included in a capital grant as part of the state budget when it’s revealed March 4.
Charlie Chesbrough, Cox Automotive’s senior economist, said the January vehicle sales figures reported by automakers appeared below expectations for large number of the companies.
“Record cold weather during the last week of January likely had a negative impact on sales,” he said. “However, it was not just the weather. We also believe the government shutdown had an impact, from delayed purchases by furloughed workers to a more general feeling of uncertainty in the market.”
Chesbrough said consumer confidence took a hit in January, and lower optimism reduces the number of potential vehicle buyers.
Contact Mike Pare at mpare@timesfreepress.com or 423-757-6318. Follow him on Twitter @MikePareTFP.