Detroit Bureau on Twitter

Posts Tagged ‘new car sales’

New Vehicle Sales Take a Tumble in April

Buyers not taking incentive bait portends down year.

by on May.02, 2017

Auto sales took a hit in April as even higher-than-normal incentives couldn't draw buyers to dealerships.

With the industry on a steady decline, 2017 appears to be on track to be the first down year since the industry emerged from the Great Recession.

Sales of new vehicles suffered a bigger drop than expected during April, as General Motors, Ford Motor Co. Fiat Chrysler Automobile N.V., Toyota and Nissan all reported sale drops as consumers appeared to become more resistant to record incentives.

By the Numbers!

The decline in sales among top-selling brands sets up the industry for a sales drop in 2017. It would be the first year that sales of new vehicle sales have declined since the great recession and reflects the weaker than expected economic numbers that were reflected the U.S. Commerce Department’s estimate the U.S. economy grew by less than 1% in the first quarter. (more…)

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…)

Most Makers Post Positive February Sales Results

Despite strong transaction prices, concern growing over rising inventory levels.

by on Mar.01, 2017

Volkswagen posted another monthly sales increase with February's 12.7% rise. The Golf family led the way with a 60.3% jump.

Steady gains by General Motors, Nissan and Audi helped keep the industry’s sales momentum rolling during February, however, not all the makers enjoyed improvements as Ford Motor Co.’s and Fiat Chrysler’s sales slipped.

GM reported record sales of crossovers, large SUVs and pickups in February, bolstering the company’s retail market share, which was up more than one-half percentage point versus a year ago. Average transaction prices, which reflect what customers pay after sales incentives, also set a February record.

Sales News!

“Our retail-focused go-to-market strategy is delivering robust results,” said Kurt McNeil, U.S. vice president, Sales Operations. “All of our brands grew their average transaction prices by healthy amounts, and we delivered solid growth in the industry’s fastest-growing and most profitable segments.” (more…)

US New Car Sales Expected to Rise Slightly in February

Incentives climbing as makers seek more buyers.

by on Feb.24, 2017

New vehicle sales in February are expected to rise slightly, led by the country's ongoing love of trucks.

February auto sales in the U.S. are likely to follow the same tepid pace from last month’s results when makers saw sales dip ever-so-slightly; however, this month they are expected to rise ever-so-slightly.

Industry consultants J.D. Power and LMC Automotive believe U.S. sales will rise less than 1% in spite of record levels of enticements aimed at new vehicle buyers. February U.S. new vehicle sales will be about 1.35 million units, up 0.6% from a year earlier, the consultancies said. Analysts at Edmunds are seconding the observation.

Subscribe Now!

The seasonally adjusted annualized rate for the month will be 17.7 million vehicles, up from 17.6 million last February. The Power and LMC expect U.S. sales to eclipse last year’s record of 17.55 million units with 17.6 million in 2017. (more…)

Automakers Get Into the Black Friday Spirit

Deals abound for new car shoppers.

by on Nov.23, 2016

Like many other makers, Mercedes is offering special holiday deals.

Black Friday isn’t just the day to get a great deal on a low-end television or video game system, automakers are fully into the swing of busiest shopping day of the year with a slew of promotions.

Ford, General Motors, Toyota, Lexus and Mercedes are all flooding the airwaves with various Black Friday connected sales as makers look for ways to jumpstart stalled efforts to move metal after months of red-hot sales stalled at the end of the summer.

Auto Sales News!

“We are seeing a tougher pricing environment, higher levels of discounts,” said Ford Chief Executive Officer Mark Fields reported Reuters. (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…)

Buyers Take a Breather as August Auto Sales Slump

Makers hoping for strong September to regain momentum.

by on Sep.01, 2016

New vehicles sales hit the brakes in August as buyers appeared to take a break from the market.

Sales of new vehicles stumbled in August and as a result General Motors, Ford, Nissan and Toyota all reported significant drops sales year over year but transaction prices continued to increase right along with incentives, analysts said.

But Fiat Chrysler Automobiles N.V., which has come under for its reporting methods, said its sales increased 3% last month thanks to a strong showing by the Jeep brand, which continues to win new customers with its sport utility vehicles.

The Journal of Record!

Audi also posted a 2.5% sales increase, but Volkswagen, which has been in year-long sales slump, said its sales dropped 9%. (more…)

Lincoln Nabs Top Spot in Customer Satisfaction Survey

Detroit automakers gaining ground on Japanese, Korean counterparts.

by on Aug.24, 2016

Lincoln is tops on the latest ACSI survey of new vehicle buyers in 2016.

New car buyers are happier with their purchases this year than they were last year and Lincoln is the leader of the pack, according to a new survey from the American Customer Satisfaction Index.

The annual survey shows Lincoln’s approval rating this year – 87 out of 100 – is a 5% improvement over last year’s result. Honda was second with an 86, marking an 8% jump, while Toyota and BMW tied for third at 85. It was a 4% increase for both brands.

Product News!

Often in these types of surveys, luxury brands, such as Lincoln and BMW, sweep the top spots, but this wasn’t the case this year. Claes Fornell, ACSI chairman and founder, said the figures show the gap in consumer perception may be closing between mass-market and luxury brands. (more…)