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Posts Tagged ‘car sales’

April Showers Aren’t Bringing May Auto Sales in the US

Monthly sales expected to remain flat compared with last year.

by on May.25, 2017

May auto sales in the U.S. are expected to remain flat despite plenty of incentives aimed at luring buyers into to showrooms.

New vehicle sales are expected to remain flat year-over-year during May at a total of 1.53 million units in May 2017, resulting in an estimated 16.7 million seasonally adjusted annual rate, according to analysts at Kelley Blue Book.

“We could see a positive month for the industry for the first time this year in May, but Kelley Blue Book expects totals to finish about even year-over-year, despite one extra selling day in 2017,” said Tim Fleming, analyst for Kelley Blue Book.

Sales News!

“Retail numbers for May are expected to finish strong, however they continue to be supported by considerable incentives and lease subvention. In recent months, leasing appears to be reaching its peak, which is expected, given declining residual values, which is contributing to this year’s slowing sales,” he said. (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.

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US New Vehicle Sales Expectations Falling for 2017

Used car availability giving buyers lower-cost alternatives.

by on Dec.20, 2016

Midsize car sales are expected to drop the most in 2017 as overall sales are expected contract.

The outlook for new car sales is getting growing a bit dimmer, according to one organization.

The U.S. light vehicle market will contract 1.8% in 2017, said BMI Research in a new report, which is a downward revision from the organization’s previous expectation of a 1% decline.

The Journal of Record!

BMI notes that a growing used vehicle inventory is adding to the pressure of a market that is already reaching a natural plateau helping to drive down any increase in new vehicle sales. (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.

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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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US Auto Sales Rebound in November

VW may be biggest surprise with 24% increase over last year's results.

by on Dec.01, 2016

GM sales were up more than 10% in November, led, in part, by the Chevy Malibu, which enjoyed its best November since 1997.

With General Motors and Volkswagen AG leading the way, the U.S. auto industry busted out of a mini-slump in November, albeit with some help from major promotions.

GM’s total U.S. sales in November were up more than 10% over last year as Buick, Cadillac and GMC posted double-digit gains.

Sales News!

“GM’s November performance reflects the continued strength of our U.S. business. We gained profitable retail share, commercial and small business deliveries were strong and we commanded the industry’s best average transaction prices,” said Kurt McNeil, GM’s vice president of U.S. Sales Operations. (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.

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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…)

The Sky Isn’t Falling, Says GM President

Batey counters concerns raised by Ford CFO that auto sales have peaked.

by on Aug.02, 2016

GM North America Pres. Alan Batey introduces the 2017 Chevy Cruze Hatchback at the NAIAS.

It’s been a great ride for the U.S. auto industry. After crashing into the worst recession in decades, it rebounded to record sales of 17.5 million vehicles last year and, until recently, seemed poised to top that number again in 2016.

But there’s been a growing chorus of concern in recent weeks, industry insiders like Ford Motor Co. Chief Financial Officer Bob Shanks warning that the ride is over, and that U.S. car sales are about to start the inevitable slide. Just don’t count General Motors North America President Alan Batey among those who says the downturn is about to begin.

Perspective!

“We think the industry will plateau at some time, but everything we see says that into the near future the industry will remain strong,” Batey told reporters.

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New Vehicle Sales Expected to be Flat in July

Many analysts believe sales run peaked last year.

by on Jul.29, 2016

New car sales are expected to flatten out in July, but makers are still tracking for a record year.

New vehicle sales are expected to drop 1% year-over-year to a total of 1.5 million units in July 2016, resulting in an estimated 17.5 million seasonally adjusted annual rate, or SAAR, according to Kelley Blue Book.

The estimate is in line with a growing consensus that sales of new vehicles peaked during the summer and fall of 2015 and the growth of sales has flattened out in recent months. However, the competition for those sales has intensified as the recent furor General Motors use of incentive “increases” revealed.

Auto Insider!

Chuck Stevens, GM’s chief financial officer, said the discounts GM offered over the Fourth of July was a “tactic” and not a signal that GM was preparing to make broader use of incentives. (more…)

Used Car Buyers Charged Up about EVs and Hybrids

Top three fastest selling used cars in U.S. are electrics.

by on Jul.22, 2016

The Toyota Prius plug-in hybrid is the fastest-selling used car in America through May.

Looking for a good used car? Well, if you find a hybrid or an EV you like, don’t dawdle on buying it because it’ll be off the lot before you know it.

According to iSeeCars.com, five of the top 10 fastest selling used cars in the U.S. in the first half of this year were hybrids or full electrics, including the top three movers. Perhaps even more astonishing, only one of the top 10 is an American car.

The Last Word!

Overall, iSeeCars.com found that one- to three-year-old used cars took an average of 42.4 days to sell. The top 10 fastest selling cars, however, were much faster—ranging from just 19.7 days on the market to 29.4 days. (more…)