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Posts Tagged ‘auto sales’

Unlike US, New Vehicle Sales on the Rise in Canada

June sales jump 6.5% while first half is up 5%.

by on Jul.05, 2017

Ford sales were up 14.1% in June in Canada. The country's auto sales are at record levels this year and trucks are the reason.

Canadian auto sales are climbing steadily this year, increasing by 5% during the first half of 2017 after setting a record in June when sales increased 6.5%.

As in the United States, light trucks have been strong during the first six months of the year even as sales of passenger cars dropped. Overall, automakers sold 1.04 million new vehicles in Canada between Jan. 1 and June 30, according to sales figures from manufacturers.

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In contrast, U.S. auto sales fell for a fourth consecutive month in June, despite hefty consumer discounts, the major automakers reported on Monday. The gains in sales in Canada as well as in Mexico are offsetting some of the drop in U.S. sales. (more…)

New Car Sales Hitting the Skids in the US

June sales expected to be 4% lower, KBB says.

by on Jun.26, 2017

New vehicles sales are expected to drop 4% on year-over-year basis in June, according to KBB.

The decline in new vehicle sales appears to be accelerating after a 4% year-over-year drop during the month of June, according to Kelley Blue Book estimates.

KBB puts total sales of 1.46 million units in June 2017, resulting in an estimated 16.3 million seasonally adjusted annual rate, one of the lowest recorded in the past two years when SAARs of 17 million plus have been the norm as sales of new vehicles reached record levels.

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“Kelley Blue Book projects June will be yet another down month of sales with expected declines in both fleet and retail,” said Tim Fleming, KBB analyst. “With manufacturers continuing to announce production cuts at their plants following weaker consumer demand, it all but solidifies 2017 as a down year.  (more…)

Fuel Economy Ratings Still Drive New Car Purchases

Bigger vehicles with improved mileage means better sales.

by on Jun.20, 2017

The fuel economy of the Toyota RAV4 has risen by 10 mpg in five years. Sales have jumped by 166% during that time.

Improvements in fuel economy have helped manufacturers gain a competitive edge in selling pickups, crossovers and sport utility vehicles, according to the authors of The Car Book.

A new analysis from the Consumer Federation of America indicates SUVs, pickups and crossovers that improved fuel economy ratings by at least 10% between 2011 to 2016, saw a 59% increase in sales.

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On the other hand, vehicles in the same segment that lagged behind in fuel economy with less than a 10% increase in miles per gallon from during the same period experienced a 41% increase in sales, almost 20 points less. (more…)

Slowing Auto Industry Threatening to Drag Down U.S. Economy

Automakers continue to cut production as sales slow.

by on Jun.15, 2017

GM is extending the summer shutdown at some plants, including this one in Fairfax, KS.

The U.S. auto industry was the little engine that could during the country’s recovery from the Great Recession, but it now may be turning into the anchor on an economy once again starting to sputter.

U.S. factory output slipped by 0.4% last month, a sharp turnaround from the 1.1% increase in April, the Federal Reserve reported on Thursday morning. While some industries continue to show strength, the weak figures for May coincide with growing production cuts by the U.S. auto industry.

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And the auto industry is facing still more jobs cuts in the months to come, industry analysts warn, especially if car sales don’t level out. GM, for one, has announced that it will extend its normal, two-week summer shutdown to as much as five weeks at some plants in the Midwest.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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