Motor vehicles, model year 1985.
Moran, Larry R.
MODEL year 1985 was the third consecutive year of expansion for the
motor vehicle industry. Unit sales of new motor vehicles reached a
record 15.7 million, up from 14.2 million in 1984 (chart 5). New cars
sales increased in model year 1985, but less than in the preceding 2
years. The deceleration was in sales of domestic cars; sales of imports
increased sharply after changing little in 1984. New trucks sales again
increased strongly, but less than in 1984.
Sales of new cars were 11.1 million in model year 1985, up from
10.3 million in 1984 but slightly below the previous peak of 11.3
million in 1978. Domestic car sales increased to 8.4 million from 7.9
million in 1984, following larger increases in the preceding 2 years
(table 1). Sales of all size categories increased. Total sales
increased moderately over the first three quarters of model year 1985
before jumping sharply in the last quarter; the jump reflected extensive
below-market financing by automakers to promote end-of-model-year sales.
Both domestic car inventories and the inventory-sales ratios changed
little in the first three quarters of the model year and then declined
due to the jump in sales. Domestic car production was 8.2 million units
in model year 1985, up from 7.7 million in 1984.
Sales of imported cars increased in model year 1985 to a record 2.7
million from 2.4 million, following only slight increases in the
preceding 2 years. The share of new car sales accounted for by imports
increased to 24 percent from 23-1/2 percent in 1984. Sales of imports
moved up sharply in the second half of the 1985 model year, when the
Japanese program of voluntary restraint was loosened. Effective April 1,
1985, the limit on shipments from Japan to the United States was raised
to 2.3 million cars per year from 1.85 million.
The average unit value--that is, the average purchase price--for
new cars increased 2 percent to $11,413 in model year 1985. For
domestic cars. the average unit value increased 1/2 percent to $11,011;
for imports, average unit value increased 7-1/2 percent to $12,668.
New truck sales increased for the fourth consecutive year. Unit
sales were 4.6 million, up from 3.9 million in 1984 and well above the
previous peak of 4.2 million in 1978. Sales of both domestic and
imported trucks were up strongly in 1985.