Detroit Bureau on Twitter

Posts Tagged ‘auto sales news’

New Vehicle Sales Expected to Slide in April

Sales roller coaster continues to provide chills and thrills.

by on Apr.26, 2017

New vehicle sales are expected to drop at least 2% in April, according to several analysts.

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.

Financial News!

“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…)

Auto Sales Roller Coaster Continues for US in March

Rising inventories plaguing some automakers.

by on Apr.03, 2017

General Motors posted a sales increase in March, led by a 26% jump in Chevy Equinox sales.

With the industry in the midst of the critical spring selling season, U.S. auto sales slowed more than expected during March. Ford, Fiat Chrysler Automobiles and Toyota all reported drops in demand, but General Motors, Nissan and Volkswagen-Audi posted modest increases for the month. Other makers see similar problems looming on the horizon. And with sales expected to continue slowing in the months ahead, that poses some potentially significant problems for the Trump Administration.

GM’s March numbers highlight the challenges the industry – and, potentially, the White House – is facing. While the maker’s sales were up for March, that was offset by a sharp rise in its inventory of unsold vehicle, which climbed to 98 days by the end of the month, about 50% above what is considered the industry norm.

News Now!

The largest domestics automaker is highly likely to increase use of incentives to move that inventory, according to industry analysts. However, it’s not a single prong approach: GM is also ordering temporary shutdowns at several plants. And others makers may be forced to take similar steps. This flies in the face of Trump’s ongoing push to expand auto production in the U.S., and potentially undercuts his credibility as a job producer. (more…)

Global Auto Sales to Grow This Year, IHS Predicts

Despite uncertainty of China, sales expected to rise.

by on Feb.23, 2017

While sales in North America may fall, IHS Markit expects global auto sales to rise in 2017.

Even with sales dropping in North America and uncertainty over the outlook in China, total global light vehicle sales will increase by 1.5%, according to a new report from IHS Markit.

However, industry risk in mature markets is at the highest level it has been since the Lehman Brothers collapse and global industry downturn from 2008 through 2010, and will be a key factor for the near future, the IHS forecast said. Total 2017 global light vehicle sales should increase to 93.5 million units, IHS Market said.

Global Auto News!

“Political uncertainty could cause a significant rift in light vehicle sales both in the U.S. and Europe, as both regions are undergoing fluctuations in policy, leadership and other dynamics,” said Henner Lehne, senior director, global vehicle group for IHS Markit. (more…)

Leasing Levels Hit New High-Water Mark in 2016

Some analysts believe leasing will level off in 2017.

by on Jan.30, 2017

Large SUVs are gaining in popularity and one of the ways they become more "affordable" is to lease them.

It was a record sales year for U.S. automakers last year, a new high-water mark reached, in some measure because automotive lease volumes also hit a new benchmark of 4.3 million vehicles, according to a new study, which translates to more than 30% of all new vehicle sales.

Edmunds latest Lease Market Report noted that leasing accounted for 31% of all new vehicle sales in 2016, which is up from 29% in 2015 — the previous high. Overall, leasing has been on the rise for some time now – growing 91% in the last five years – as buyers look to get more bang for their buck.

By the Numbers!

That’s never been more true when it comes to a public hungry for all of the new sport-utilities, trucks and crossovers it can get its hands on. However, these vehicles often come with a heftier price tag than smaller sedans and coupe. (more…)

Toyota Cedes Global Sales Crown to VW

VW sold 10.31 mil vehicles in 2016, a 3.8% gain.

by on Jan.30, 2017

Despite the sales hit it took due to the diesel scandal, Volkswagen overtook Toyota for the global sales crown.

It’s official: Volkswagen Group became the world’s best-selling automaker in 2016, toppling king-of-the-hill Toyota by more than 150,000 vehicles worldwide.

If anything, analysts suggested, the German maker’s lead would have been even larger were it not for VW ongoing diesel emissions scandal. Demand in the key U.S. market took a double-digit dip last year, but the “people’s car” company still managed to deliver a 3.8% global increase, buyers around the world taking delivery of 10.31 million products sold under a range of marques, from entry-level Seat to ultra-luxurious Bentley, as well as the flagship Volkswagen brand.

Global Auto News!

By comparison, Toyota delivered 10.18 million vehicles last year, a more modest 0.2% year-over-year increase. The Japanese giant had snatched the sales crown from long-time leader General Motors in 2009, ceding the title only once during the past eight years. (more…)

Record December Sets New US Auto Sales Annual Benchmark

GM, Ford enjoy strong 2016 while FCA struggles.

by on Jan.04, 2017

Ford's F-Series truck was the best-selling vehicle in the U.S. in 2016 – the 35th year in a row.

Rising consumer confidence, coupled with an increase in promotions and incentives, helped the U.S. auto industry set a new sales record in December and post record sales for the second consecutive year.

General Motors, with a 10% increase, Ford, Toyota, Nissan and Volkswagen all reported increased sales for December while Fiat Chrysler Automobiles N.V. reported a 10% sales decline as it continued to trim sales to fleet customers.

Sales News!

“We finished 2016 with a strong December, reflecting the continued strength of GM’s U.S. retail and commercial businesses,” said Kurt McNeil, GM’s vice president of U.S. Sales Operations. “We begin 2017 well positioned to continue growing our U.S. retail business, driven by all-new products like the Chevrolet Equinox and Traverse being launched into key, growing U.S. market segments.”  (more…)

October US Auto Sales Hit the Skids

Ford delays sales report due to fire at headquarters.

by on Nov.01, 2016

Jeep sales had been reliably strong for FCA during the past few years; however, they fell 7% in October.

The tempo of new vehicle sales slowed during October as every major automaker reported a drop during October.

Ford Motor Co., which also was expected to report a drop in sales, delayed the release of its October sales due to a fire in an electrical substation in the company’s headquarters in Dearborn, Michigan. The fire, which happened yesterday, caused the evacuation and closure of the building.

Sales News!

The big surprise was a 10% drop in sales by FCA, which had posted a long string of sales increases, stretching back more than five years until it had to re-state its sales figures this summer under pressure from lawsuits by dealers and Securities and Exchange Commission. (more…)

Sign of the Times: New CR-V Set to Replace Civic, Accord as Honda’s Best Seller

Honda isn’t alone. Toyota’s RAV4 also on track to lead.

by on Oct.13, 2016

Honda officials expect the new CR-V to overtake its perennial best-selling vehicles, the Civic and Accord, in the near future.

They’ve long dominated the sales charts, but the Honda Civic and Accord models may soon get brushed aside – by another Honda model, it seems, as the Japanese automaker expects to see the fifth-generation remake of the CR-V crossover-utility vehicle become its top volume model.

That shouldn’t really be much of a surprise, however, considering current industry trends. Light trucks, in general, now account for about 60% of the U.S. new car market, and while pickup sales are flattening out, CUVs and more traditional sport-utility vehicles “are really hot,” said American Honda Motor Co.’s top U.S. executive, John Mendel.

Your Auto Insider!

Even as it comes to the end of its life, the outgoing, fourth-generation Honda CR-V is accounting for about a quarter of the brand’s total U.S. sales and is “now virtually on par with Civic and Accord,” and likely to build momentum with the launch of the new model for 2017. (more…)

Carmakers Face Tough Test as Market Flattens

Sales expected to fall just short of last year's record.

by on Oct.13, 2016

Honda's John Mendel says there is a chance that automakers will beat last year's record sales.

Manufacturers are eager to roll out new models this fall and even adding more capacity in an effort to gain an edge over rivals.

But they are also facing a highly competitive market where manufacturers are being tempted to raise incentives to protect market share, noted Stephanie Brinley, an analyst with IHS Automotive.

Sales News!

“The market is going to get more competitive and we will see if (companies) fall back into their old practices,” she added. “The easy growth is gone.” (more…)

New Vehicle Sales Remain Flat in September

Utility vehicles and trucks still leading the way.

by on Oct.03, 2016

Not even the F-Series could save Ford's sales in September: the trucks were down 3% while Ford was down 7.7%.

Sales of new vehicles remained flat during September as domestic manufacturers, General Motors Co., Ford Motor Co. and Fiat Chrysler Automobiles N.V., reported sales decreases as Japanese rivals posted modest increases for the month.

Ford was one of the biggest losers reporting an 7.7% drop in sales. Even sales of the F-Series pickup trucks fell.

Sales News!

“We continue seeing strong customer demand, especially for vans and pickup trucks, including our all-new Super Duty,” said Mark LaNeve, Ford vice president, U.S. Marketing, Sales and Service.  (more…)