Sales of new vehicles are expected to drop in April by between 2% and 3% year-over-year despite steadily rising incentives, according to estimates by Kelly Blue Book and J.D. Power, fueling concerns that the industry is facing a broad decline in 2017.
“After a weaker-than-expected March, it’s becoming more likely that 2017 will be the first down year for the industry since 2009,” said Tim Fleming, analyst for Kelley Blue Book. “Kelley Blue Book expects April to continue this downward trend, however, the SAAR should bounce back to approximately 17.1 million as a result of one less selling day.
“Beyond April, we will continue to closely monitor still high levels of inventory and elevated incentive spending by manufacturers, both of which are signs of overproduction following last year’s sales peak,” he added in his new analysis of industry sales trends. (more…)