Auto industry sales slip 1.6%, third drop this year
Sales of trucks and SUVs continued their upward run last month in the U.S., but that didn’t make up for the continuing slump for sedans. Overall sales fell 1.6 percent in March compared to a year ago, marking the third straight month of slipping sales as automakers come off a record 2016.
Analysts incorrectly forecast that March sales results would demonstrate a slight uptick as a result of aggressive sales incentives suggested by carmakers. Instead, they sold 1,555,859 cars and trucks, compared to the 1,581,764 sold in March 2016, according to Autodata Corp. Year-to-date sales are down 1.Five percent compared to the very first quarter of 2017.
Industry experts on Monday described the latest numbers as an indication that rising sales figures loved by automakers in latest years may have peaked.
“We’ve been telling for some time that U.S. sales have plateaued at a very high level,” said Michelle Krebs, an executive analyst for Autotrader. “March seems to prove that out. Sales are coming in strong, but softening as we anticipated. But, again, it’s still at a very high level.”
Stephanie Brinley, senior automotive analyst, IHS Markit, says the introduction of fresh SUVs via the year should keep sales strong: “These vehicles will proceed to drive the story of enlargening popularity of utility vehicles and maintain pressure on car sales.”
Sales of trucks and SUV sales did drive overall increases for some automakers in March, including General Motors Co., which had a 1.Five percent overall boost in March.
GM sales totaled 256,007 vehicles in March, coming in under forecast. But that figure was still higher than the same month a year ago, and an increase over February 2017.
GM’s Buick sales leaped 15.1 percent compared to a year ago, with 20,957 sold. Chevrolet brand sales slipped Two.Three percent, with Impala and Malibu sales off by twenty three percent and thirty six percent, respectively. GMC sales grew by twelve percent, and Cadillac sales dropped 1.Five percent compared to a year ago.
Ford Motor Co., sold 234,895 vehicles, a 7.Two percent dip compared to March a year ago. It moved 81,330 F-Series pickups off lots in March, a ten percent leap over last year, and almost 28,000 more than all Ford-brand cars combined last month. Overall, Ford’s car sales slipped 24.Two percent.
Mark LaNeve, Ford’s vice president of U.S. marketing, sales and service, said in a call with analysts and reporters Monday that sliding car sales are happening industrywide, but it might not be bad for Ford’s revenue.
“You could argue (it is) structural,” he said. “We’ve been witnessing it for six years. It’s a very favorable phenomenon . SUVs and trucks transact at a much higher average transaction price, so that’s truly good for the top line revenue number.”
Fiat Chrysler Automobiles NV reported it sold 190,254 vehicles in March, a Four.6 percent drop for the month.
Overall, the Dodge brand sales enlargened 9.7 percent, while the Ram truck brand was up six percent. Jeep’s overall sales for the month were down eleven percent from the previous year. Chrysler sales dropped by 33.1 percent, while Fiat sales were down Five.Three percent.
Despite a spate of negative headlines this year regarding emissions, Volkswagen Group of America reported a Two.6 percent sales increase for March over 2016.
Toyota Motor North America Inc. and American Honda Motor Co. spotted truck sales increase while overall sales slipped due to sluggish car sales.
Light truck and SUV sales were a bright spot for Toyota in a month where overall numbers were down from the previous year. The company’s overall sales for March dipped Two.1 percent from 2016. A breakdown of the numbers showcase Toyota sales down 1.Two percent and Lexus sale down 7.Five percent.
Honda’s overall sales slipped .7 percent from the same month in 2016. Trucks and SUVs gained more than 12.6 percent from the previous year with 61,975 vehicles moving during the month — a record for March.
Nissan North America Inc. witnessed a Trio.Two percent increase in sales. The company was largely boosted by a 25.6 percent leap in trucks and SUVs. Sales of the Nissan Rogue hopped 42.6 percent, with the automaker selling 39,512 of the compact SUVs.
Autotrader’s Krebs said March sales prove the sales plateau analysts had been predicting is real.
“We just don’t see an end in glance as consumers leave sedans for SUVs,” she said in a statement. “With inventories building and incentives rising, it is taking more effort and money to budge vehicles, particularly cars. Going forward, automakers likely will look to cut production to manage both inventories and incentives.”
