GM, Ford, Fiat Chrysler sales down in January

Buoyed by consumer confidence amid stock market gains following the presidential election, easy credit and relatively low gas prices, Americans bought new vehicles at a steady clip in January.

Although few expect the auto industry to notch a third consecutive full-year record for U.S. sales, automakers are basking in profits after selling 17.55 million vehicles in 2016.

Edmunds.com projected a January sales decrease of 0.7% for the auto industry, compared to a year earlier, while TrueCar subsidiary ALG projected a 1.5% decrease and Kelley Blue Book predicted a 2.7% decline.

After a record 2016, anything close to last year's level is relatively positive for the industry. And the auto industry remains flush with cash as its high-profit sport-utility vehicles, crossovers and pickup trucks remain popular amid low gas prices.

But a red flag is emerging: Discounts are creeping up in a sign of rising competitiveness for market share, which could compromise profitability. Average incentives per vehicle totaled $3,635 in January, up 21.6% from a year earlier, according to TrueCar subsidiary ALG's estimates.

Easy credit is juicing sales, too. About 10% of all new-car loans in January were interest-free, up from 8% a year earlier, according to Edmunds.com.

Here's how the U.S. automakers fared:

General Motors:

Edmunds.com sales projection: up 1.2%

Kelley Blue Book sales projection: down 4.3%

ALG sales projection: down 2.8%

Actual results: down 3.8%

GM's U.S. sales totaled 195,909 units for January, which is typically the slowest month of the year for the auto industry.

The company's flagship Chevrolet brand declined 1.9%. The GMC brand rose 1.1%, while Buick tumbled 28.2% and Cadillac fell 4.1%.

GM's retail sales, the most profitable segment, declined 4.9%.

“In early January, we focused on profitability while key competitors sold down their large stocks of deeply discounted, old-model-year pickups,” said Kurt McNeil, U.S. vice president of sales operations, in a statement. "We gained considerable sales momentum as we rebuilt our mid-size pickup, SUV and compact crossover inventories from very low levels following record-setting December sales.”

Ford Motor:

Edmunds.com sales projection: down 2%

Kelley Blue Book sales projection: down 2%

ALG sales projection: down 3.2%

Actual results: down 0.6%

Ford said it sold 172,612 new vehicles in January. Sales of all of Ford's cars fell 17.5% while sales of its crossovers and SUVs rose 7% and sales of its pickup trucks increased 5.5%.

The company's F-series pickup truck lineup, which is consistently the best-selling vehicle in the U.S., posted a 12.5% increase to 57,995 units.

“The new year brought strong consumer demand for F-Series, Lincoln and record SUV sales, especially high-end models,” Mark LaNeve, Ford's vice president of U.S. marketing and sales, said in a statement.

Fiat Chrysler:

Edmunds.com sales projection: down 15.3%

Kelley Blue Book sales projection: down 14.2%

ALG sales projection: down 9.4%

Actual results: down 11.2%

Sales fell as Fiat Chrysler continues to aggressively slash its reliance on less-profitable fleet sales, such as those to rental car companies. Fleet sales declined 31%, compared to a year earlier. The company said its retail sales were flat.

Overall, Fiat Chrysler sold 152,218 vehicles for the month. Sales of its crucial Jeep brand of SUVs and crossovers declined 6.9%. The Dodge brand fell 17%, the Ram brand increased 5.5% and the Chrysler brand slumped 38.6%.

Follow Paste BN reporter Nathan Bomey on Twitter @NathanBomey.