Detroit Bureau on Twitter

Posts Tagged ‘auto sales’

March Sales Coming in Like a Lion

Analysts predicting sales increase of more than 2%.

by on Mar.27, 2017

Trucks are still paving the way for strong sales in the U.S. these days. March is expected to see a significant jump in new vehicle sales.

Even with concerns about rising interest rates and downward pressure on used car prices, making leases more expensive, auto makers are expected to post a sales increase for March, analysts said.

The auto industry will see its first year-over-year monthly increase of 2017 as March retail sales are expected to rise 2.4%, according to a forecast developed jointly by J.D. Power and LMC Automotive. Total sales are expected to increase 1.6%. J.D. Power and Kelley Blue Book expected that the seasonally adjusted rate of annual sales will reach 17.3 million units to 17.4 million.

Sales News!

However, the sales increase will come at a price as incentives were running at a record level of $3,768 per unit, the highest level since the recession of 2009. Incentives as a percentage of manufacturers suggested retail prices reached 10.4% in March, which is also the highest level since 2009 when the topped 11% of MSRP, Power noted. (more…)

GM, Ford January Sales Slump in China

Celebrations closed businesses all over the country.

by on Feb.10, 2017

Ford sales dropped 32% year-over-year in January due to the Chinese New Year celebrations.

The timing of the Chinese New Year and a tax hike took a heavy toll on new vehicle sales in China during January.

Both General Motors and Ford Motor Co., which finished 2016 with a jump in sales, saw their sales decline as the New Year celebration shut down businesses of all kinds across China.

Drive On!

General Motors and its joint ventures sales declined 24% due to the earlier Spring Festival holiday and reduction in the vehicle purchase tax incentive, GM said in a statement. (more…)

Some Up, Some Down as Automakers Report January Sales

Strong consumer confidence yields record for Hyundai, but numbers slump at GM, Ford and Toyota.

by on Feb.01, 2017

Dusting the competition: Ford was down overall, but had a spectacular month for F-Series.

After a robust finish to 2016, new vehicle sales slowed in January, though generally remained healthy enough overall to boost confidence for the coming year.

There has been concern within the industry that 2016 brought a peak to the automotive recovery, with analyst and industry planners watching to see if and when things would begin to cool off. The good news they got was that, with a few exceptions, the new car market appeared to do better than initially forecast – and not only were sales relatively solid but consumers continued buying more expensive products.

Subscribe for Free!

The numbers were decidedly mixed, industry giants General Motors, Toyota and Ford all reporting year-over-year declines for January. But Nissan’s sales were up for the month, and a number of automakers scored new sales records, including Hyundai, Audi and Nissan’s luxury arm Infiniti. Auto industry analysts had been anticipating declines of anywhere from 0.7% to 2.7% — according to TrueCar and KelleyBlueBook, respectively. But even for many of those makers who did suffer sales dips in January, the news wasn’t all bad.

(more…)

Analysts Predicting Dip in January Auto Sales

Industry recovering from white hot December sales.

by on Jan.26, 2017

Dealer lots are expected to see less traffic this month as the industry recovers from a white-hot December.

After a robust December that pushed the auto industry to record levels, sales are expected to retreat in January as carmakers regroup, analysts said.

Edmunds, one of the industry’s top shopping and information platforms, is predicting 1.153 million units cars trucks will be sold in the U.S. in January, for an estimated Seasonally Adjusted Annual Rate of 17.7 million units, which represents a 31.5% drop in sales from December 2016, and a 0.7% decrease from January 2016.

Subscribe Now!

New vehicles ales are expected to 3% year-over-year to a total of 1.13 million units in January 2017, resulting in an estimated 17.4 million seasonally adjusted annual rate, according to Kelley Blue Book, the vehicle valuation and information source.  (more…)

Automakers Accelerate Plant Closures, Production Cuts

Ford idling Kansas City, GM dropping shift in Detroit.

by on Dec.21, 2016

GM will drop a shift at the Detroit plant producing its Chevrolet Volt plug-in hybrid.

The year is ending on a tenuous note for the U.S. auto industry. Even as sales records are set to fall for the third year in a row, bulging inventories are leading manufacturers to schedule production cuts, some short-term, others indefinite.

Thousands of workers are being impacted by the cuts at a time when the incoming Trump Administration has promised to boost U.S. manufacturing. The question for the near-term is whether further cuts are coming, something likely to depend on just how much the country’s car market slips in the months ahead.

Industry News!

The latest cuts come in Kansas City, where Ford Motor Co. will idle its pickup and van plant for a week early next month, and in Detroit, where General Motors says it will cut the second shift at a plant producing three sedans, as well as the plug-in hybrid Chevrolet Volt.

(more…)

GM Idling Five Plants to Curb Inventory Build-up

Detroit giant follows moves by rival Ford.

by on Dec.19, 2016

The Chevy Cruze is one of many sedans and coupes that will be impacted by the plant closures.

Faced with a growing surprise of inventory, General Motors will temporarily idle five of its U.S. assembly plants next month.

The move focuses on slow-selling sedans, such as the Chevrolet Cruze, which have been losing momentum in a market increasingly dominated by sport- and crossover-utility vehicles. GM’s moves follows recent production cuts by Ford, and the decision by Fiat Chrysler to end U.S. production of that maker’s passenger car models.

Subscribe to Stay on Top!

GM’s decision also comes at a time when industry insiders and analysts are forecasting that the U.S. new vehicle market has reached its peak for the current economic cycle. The only real debate is how far and how fast sales will drop over the next several years, after three years of all-time industry records.

(more…)

Delayed a Day, Ford Sales Also Take a Tumble

Lincoln a rare bright spot.

by on Nov.02, 2016

Ford's Super Duty provided a rare bright spot for the automaker in October.

A day late – and a dollar short, it seems, as Ford Motor Co. says its sales also took a double-digit dip during October, in line with the overall U.S. new car market slide.

The news wasn’t entirely bad, however, Ford reporting growth by its long-struggling luxury brand, Lincoln, as it rolls out an assortment of new and updated products, including the all-new Continental flagship sedan.

By the Numbers!

Ford issued its numbers after a day-long delay due to a fire that knocked out electrical power to its corporate headquarters in the Detroit suburb of Dearborn. The rest of the industry didn’t fare especially well, even without Ford’s downward pull. While a few makers reported strong, and even record, sales for October, the market was down about 4% year-over-year.

(more…)

AutoNation Embarks on Major Brand Expansion

Dealer chain will add used car-only shops, parts business, push online car sales and more.

by on Oct.28, 2016

AutoNation plans to invest $500 million in a brand expansion that will see it challenge used car leader CarMax.

It may already be the nation’s largest new car dealer chain, but Florida-based AutoNation is setting out on a major brand expansion that will see it challenge used car specialist CarMax, start selling its own line of automotive parts and accessories and push further into online car shopping.

The project is expected to cost AutoNation about $500 million and take several years to put in place. But it could firm up the publicly traded dealer network’s grip at a time when many industry experts forecast dramatic changes to come in the automotive world. Whether the project is enough remains to be seen, as some experts believe car sales could decline during the coming decade in favor of new car- and ride-sharing alternatives, such as Car2Go and Uber.

Subscribe Now!

AutoNation was at the forefront of an earlier transition, as thousands of traditional ma-and-pa dealerships were taken over by mega-chains. “Now we’re ready to see how we can extend this brand we created to new business opportunities,” said AutoNation CEO Mike Jackson. (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…)

California Mandate Expected to Grow EV Sales

Improving performance of alt-fuel vehicle aids expansion.

by on Oct.04, 2016

California's ZEV rules are expected to drive EV sales during the next decade.

California’s Zero-Emission Vehicle program is expected to increase sales of electric, plug-in hybrid and other alternative light-duty vehicles in the United States during the next decade, according to a new report by the U.S. Energy Information Administration.

The ZEV program, which is administered by the California Air Resources Board, affects model year 2018 and later vehicles, requiring automakers to earn credits for alternative-fuel vehicles based on a percentage of their sales in California.

Tech News!

It also extends to nine other states concentrated on the West and East Coast where the program covers the entire New York City Metropolitan Region, which is also one of the stronger markets for new vehicles in the U.S. (more…)