Sales drop 7% behind dips at Detroit Three, Nissan, Honda
Numbers in this table are calculated by Automotive News based on actual monthly sales reported by the manufacturers and may differ from numbers reported elsewhere.
Source: Automotive News Data Center
**Renault-Nissan acquired controlling interest in Mitsubishi Motors on Oct. 20, 2016.
***Reflects Aston Martin, Ferrari and Lotus sales.
CANADA: GM, Nissan, Toyota volumes advance
U.S. light-vehicle sales dropped 6.9 percent in July, the weakest demonstrating yet in a year that is on track to generate the industry’s very first decline in volume since the 2008-09 market collapse.
The seasonally adjusted, annualized sales rate fell to 16.78 million last month, down sharply from 17.82 million in July 2016. The SAAR has now fallen below seventeen million three consecutive months, based on revised factors released by the Bureau of Economic Analysis on Tuesday.
July marked the seventh consecutive monthly decline in industry volume, even as automakers pile on thicker deals and the general U.S. economy resumes to grow and unemployment remains low.
Car sales fell fifteen percent and truck volume dropped 1.9 percent, the 2nd monthly decline for popular pickups, crossovers and SUVs this year.
Volume is now down Two.9 percent through July, mostly on lower car and fleet deliveries.
Ford, General Motors, FCA, Nissan, Honda and Hyundai-Kia all spotted request drop last month behind sharply lower fleet and car sales. Retail deliveries were also spotty for some automakers.
Among major automakers, there was one exception to the broad decline: Toyota, which tallied a three percent build up. Subaru continued to defy gravity in posting a 6.9 percent build up.
This July had one less selling day than July of 2016.
Ford`s 7.Four percent setback marked its thickest drop of 2017. The same went for GM, down fifteen percent, as it held to a strategy of reducing sales to rental fleets. Fiat Chrysler fell 9.Five percent. Nissan backstepped for the 2nd time this year, down three percent.
At American Honda, volume dropped 1.Two percent.
Ford Motor said retail sales in the U.S. last month slipped one percent to 159,492 light vehicles. The company’s U.S. sales have now declined every month this year but one, May.
At GM, sales dropped fifteen percent at Chevrolet, thirty one percent at Buick, 7.Trio percent at GMC and twenty two percent at Cadillac. GM’s retail volume — which has remained strong in latest months — fell fourteen percent to 202,220 in July.
GM said it slashed July sales to rental car customers in the U.S. by eighty percent compared with a year ago, to just over Two,700 vehicles, while enlargening shipments to commercial fleets. U.S. commercial vehicle fleet deliveries rose by forty percent in July to 17,300 vehicles, GM said, noting commercial sales can be as profitable as retail volume.
Fleet deliveries accounted for about eleven percent of total July volume, GM said.
The company’s average transaction price in the U.S. rose almost $1,000 to about $36,000 last month compared with July 2016.
«We have strategically determined to reduce car production rather than increase incentive spending or dump vehicles into daily rental fleets, like some of our competitors,» Kurt McNeil, GM’s head of U.S. sales operations, said in a statement. «We are working hard to protect the residual values of our fresh products and growing quality retail and commercial sales, and July`s ATPs reflect that discipline.»
Toyota Motor Sales U.S.A.’s monthly build up — only its 2nd of the year — reflected increases of Four.Three percent at the Toyota brand and Three.6 percent at Lexus.
At Nissan North America, volume dropped Four.1 percent at the Nissan brand and Infiniti volume rose nine percent. July is only the 2nd month this year that Nissan’s U.S. deliveries have declined as the company proceeds to build up share in a down market.
FCA US’ July sales fell behind a six percent decline in retail volume and thirty five percent reduction in fleet business. Ram and Alfa Romeo were the only two FCA brands to post higher sales last month, with volume off twelve percent at Jeep, thirty percent at the Chrysler brand and twelve percent at Dodge.
Volume dropped 1.7 percent at the Honda brand and rose Trio.7 percent at Acura. Overall, American Honda truck sales slipped Four.Two percent and car deliveries edged up 1.9 percent.
Among other automakers, July volume dropped Five.9 percent at Kia, Five.8 percent at the Volkswagen brand and three percent at Mazda. Deliveries rose 6.9 percent at Subaru and 1.7 percent at Mitsubishi.
In addition to Lexus and Infiniti, other luxury brands with July gains were Audi, up Two.Five percent, and Porsche, up 0.6 percent. Volume dropped fifteen percent at the BMW brand, ten percent at Mercedes, nineteen percent at Volvo, seven percent at Jaguar and Two.6 percent at Range Rover.
Analysts say sales in the 2nd half of the year will pivot on extra incentive spending and production.
«Through the very first six months of the year, the SAAR has averaged just 16.9 million units, below the 17.2-million-unit tempo of the very first half of 2016,” said Christopher Hopson, manager of North America light-vehicle forecasting for IHS Markit. “We expect some rebound from the sales rhythm in the very first half of the year, but overall light vehicle request does seem to be stuck in neutral.”
Hopson said IHS Markit has cut its forecast for industrywide U.S. sales in two thousand seventeen to 17.1 million from 17.Three million units.
J.D. Power says incentives averaged $Trio,876 per fresh vehicle in the very first two weeks of July, a high for the month and an increase of 7.8 percent from the previous July record set in 2016.
ALG estimates new-vehicle incentives in the U.S. averaged $Three,565 last month, or Four.7 percent higher than July 2016. GM, FCA, Ford and Nissan were the fattest spenders on discounts last month, ALG found. (See chart below.)
Even with slowing sales and rising incentives, automakers have managed to post solid profits because of rising transaction prices and the constant consumer shift from cars to more profitable crossovers and SUVs.
Kelley Blue Book estimates the average transaction price for light vehicles in the United States was $34,721 in July, an increase of $573, or 1.7 percent, from July 2016, yet down 0.Three percent from June.
“Despite modest sales growth for SUVs in a down market, transaction prices in these segments are not particularly strong, with compact SUVs up just one percent and midsize SUVs plane,” KBB’s Fleming said.
Barclays analyst Brian Johnson, noting that average transaction prices were up only 0.1 percent in mid-July, said the industry may be close to posting its very first decline in monthly average transaction prices since the 2008-09 market collapse.
“With competition further intensifying in the SUV markets, it’s possible that the era of rising ATPs may be over, even in spite of positive mix,” Johnson said in a note to investors last week. “Interestingly, mid-month data shows that GM has pulled back on incentives fairly significantly, even in spite of its elevated inventory situation.”
GM’s inventory rose to its highest level in a decade after its U.S. sales fell Four.7 percent in June.
GM is deliberately padding stocks as it prepares to idle several assembly plants for retooling and the introduction of fresh large pickups. But instead of the 90-day supply of fresh vehicles it had targeted at mid-year, it had a 104-day supply at month’s end, down slightly from the end of June.
GM CFO Chuck Stevens told investors last month the company remains on track to reach a toughly 70-day supply by year’s end.
Sales drop 7% behind dips at Detroit Three, Nissan, Honda
Sales drop 7% behind dips at Detroit Trio, Nissan, Honda
Numbers in this table are calculated by Automotive News based on actual monthly sales reported by the manufacturers and may differ from numbers reported elsewhere.
Source: Automotive News Data Center
**Renault-Nissan acquired controlling interest in Mitsubishi Motors on Oct. 20, 2016.
***Reflects Aston Martin, Ferrari and Lotus sales.
CANADA: GM, Nissan, Toyota volumes advance
U.S. light-vehicle sales dropped 6.9 percent in July, the weakest demonstrating yet in a year that is on track to generate the industry’s very first decline in volume since the 2008-09 market collapse.
The seasonally adjusted, annualized sales rate fell to 16.78 million last month, down sharply from 17.82 million in July 2016. The SAAR has now fallen below seventeen million three consecutive months, based on revised factors released by the Bureau of Economic Analysis on Tuesday.
July marked the seventh consecutive monthly decline in industry volume, even as automakers pile on fatter deals and the general U.S. economy proceeds to grow and unemployment remains low.
Car sales fell fifteen percent and truck volume dropped 1.9 percent, the 2nd monthly decline for popular pickups, crossovers and SUVs this year.
Volume is now down Two.9 percent through July, mostly on lower car and fleet deliveries.
Ford, General Motors, FCA, Nissan, Honda and Hyundai-Kia all spotted request drop last month behind sharply lower fleet and car sales. Retail deliveries were also spotty for some automakers.
Among major automakers, there was one exception to the broad decline: Toyota, which tallied a three percent build up. Subaru continued to defy gravity in posting a 6.9 percent build up.
This July had one less selling day than July of 2016.
Ford`s 7.Four percent setback marked its fattest drop of 2017. The same went for GM, down fifteen percent, as it held to a strategy of reducing sales to rental fleets. Fiat Chrysler fell 9.Five percent. Nissan backstepped for the 2nd time this year, down three percent.
At American Honda, volume dropped 1.Two percent.
Ford Motor said retail sales in the U.S. last month slipped one percent to 159,492 light vehicles. The company’s U.S. sales have now declined every month this year but one, May.
At GM, sales dropped fifteen percent at Chevrolet, thirty one percent at Buick, 7.Trio percent at GMC and twenty two percent at Cadillac. GM’s retail volume — which has remained strong in latest months — fell fourteen percent to 202,220 in July.
GM said it slashed July sales to rental car customers in the U.S. by eighty percent compared with a year ago, to just over Two,700 vehicles, while enhancing shipments to commercial fleets. U.S. commercial vehicle fleet deliveries rose by forty percent in July to 17,300 vehicles, GM said, noting commercial sales can be as profitable as retail volume.
Fleet deliveries accounted for about eleven percent of total July volume, GM said.
The company’s average transaction price in the U.S. rose almost $1,000 to about $36,000 last month compared with July 2016.
«We have strategically determined to reduce car production rather than increase incentive spending or dump vehicles into daily rental fleets, like some of our competitors,» Kurt McNeil, GM’s head of U.S. sales operations, said in a statement. «We are working hard to protect the residual values of our fresh products and growing quality retail and commercial sales, and July`s ATPs reflect that discipline.»
Toyota Motor Sales U.S.A.’s monthly build up — only its 2nd of the year — reflected increases of Four.Trio percent at the Toyota brand and Trio.6 percent at Lexus.
At Nissan North America, volume dropped Four.1 percent at the Nissan brand and Infiniti volume rose nine percent. July is only the 2nd month this year that Nissan’s U.S. deliveries have declined as the company proceeds to build up share in a down market.
FCA US’ July sales fell behind a six percent decline in retail volume and thirty five percent reduction in fleet business. Ram and Alfa Romeo were the only two FCA brands to post higher sales last month, with volume off twelve percent at Jeep, thirty percent at the Chrysler brand and twelve percent at Dodge.
Volume dropped 1.7 percent at the Honda brand and rose Trio.7 percent at Acura. Overall, American Honda truck sales slipped Four.Two percent and car deliveries edged up 1.9 percent.
Among other automakers, July volume dropped Five.9 percent at Kia, Five.8 percent at the Volkswagen brand and three percent at Mazda. Deliveries rose 6.9 percent at Subaru and 1.7 percent at Mitsubishi.
In addition to Lexus and Infiniti, other luxury brands with July gains were Audi, up Two.Five percent, and Porsche, up 0.6 percent. Volume dropped fifteen percent at the BMW brand, ten percent at Mercedes, nineteen percent at Volvo, seven percent at Jaguar and Two.6 percent at Range Rover.
Analysts say sales in the 2nd half of the year will pivot on extra incentive spending and production.
«Through the very first six months of the year, the SAAR has averaged just 16.9 million units, below the 17.2-million-unit tempo of the very first half of 2016,” said Christopher Hopson, manager of North America light-vehicle forecasting for IHS Markit. “We expect some rebound from the sales tempo in the very first half of the year, but overall light vehicle request does seem to be stuck in neutral.”
Hopson said IHS Markit has cut its forecast for industrywide U.S. sales in two thousand seventeen to 17.1 million from 17.Trio million units.
J.D. Power says incentives averaged $Three,876 per fresh vehicle in the very first two weeks of July, a high for the month and an increase of 7.8 percent from the previous July record set in 2016.
ALG estimates new-vehicle incentives in the U.S. averaged $Trio,565 last month, or Four.7 percent higher than July 2016. GM, FCA, Ford and Nissan were the fattest spenders on discounts last month, ALG found. (See chart below.)
Even with slowing sales and rising incentives, automakers have managed to post solid profits because of rising transaction prices and the stable consumer shift from cars to more profitable crossovers and SUVs.
Kelley Blue Book estimates the average transaction price for light vehicles in the United States was $34,721 in July, an increase of $573, or 1.7 percent, from July 2016, yet down 0.Trio percent from June.
“Despite modest sales growth for SUVs in a down market, transaction prices in these segments are not particularly strong, with compact SUVs up just one percent and midsize SUVs vapid,” KBB’s Fleming said.
Barclays analyst Brian Johnson, noting that average transaction prices were up only 0.1 percent in mid-July, said the industry may be close to posting its very first decline in monthly average transaction prices since the 2008-09 market collapse.
“With competition further intensifying in the SUV markets, it’s possible that the era of rising ATPs may be over, even in spite of positive mix,” Johnson said in a note to investors last week. “Interestingly, mid-month data shows that GM has pulled back on incentives fairly significantly, even in spite of its elevated inventory situation.”
GM’s inventory rose to its highest level in a decade after its U.S. sales fell Four.7 percent in June.
GM is deliberately padding stocks as it prepares to idle several assembly plants for retooling and the introduction of fresh large pickups. But instead of the 90-day supply of fresh vehicles it had targeted at mid-year, it had a 104-day supply at month’s end, down slightly from the end of June.
GM CFO Chuck Stevens told investors last month the company remains on track to reach a toughly 70-day supply by year’s end.
Sales drop 7% behind dips at Detroit Three, Nissan, Honda
Sales drop 7% behind dips at Detroit Trio, Nissan, Honda
Numbers in this table are calculated by Automotive News based on actual monthly sales reported by the manufacturers and may differ from numbers reported elsewhere.
Source: Automotive News Data Center
**Renault-Nissan acquired controlling interest in Mitsubishi Motors on Oct. 20, 2016.
***Reflects Aston Martin, Ferrari and Lotus sales.
CANADA: GM, Nissan, Toyota volumes advance
U.S. light-vehicle sales dropped 6.9 percent in July, the weakest showcasing yet in a year that is on track to generate the industry’s very first decline in volume since the 2008-09 market collapse.
The seasonally adjusted, annualized sales rate fell to 16.78 million last month, down sharply from 17.82 million in July 2016. The SAAR has now fallen below seventeen million three consecutive months, based on revised factors released by the Bureau of Economic Analysis on Tuesday.
July marked the seventh consecutive monthly decline in industry volume, even as automakers pile on fatter deals and the general U.S. economy resumes to grow and unemployment remains low.
Car sales fell fifteen percent and truck volume dropped 1.9 percent, the 2nd monthly decline for popular pickups, crossovers and SUVs this year.
Volume is now down Two.9 percent through July, mostly on lower car and fleet deliveries.
Ford, General Motors, FCA, Nissan, Honda and Hyundai-Kia all witnessed request drop last month behind sharply lower fleet and car sales. Retail deliveries were also spotty for some automakers.
Among major automakers, there was one exception to the broad decline: Toyota, which tallied a three percent build up. Subaru continued to defy gravity in posting a 6.9 percent build up.
This July had one less selling day than July of 2016.
Ford`s 7.Four percent setback marked its fattest drop of 2017. The same went for GM, down fifteen percent, as it held to a strategy of reducing sales to rental fleets. Fiat Chrysler fell 9.Five percent. Nissan backstepped for the 2nd time this year, down three percent.
At American Honda, volume dropped 1.Two percent.
Ford Motor said retail sales in the U.S. last month slipped one percent to 159,492 light vehicles. The company’s U.S. sales have now declined every month this year but one, May.
At GM, sales dropped fifteen percent at Chevrolet, thirty one percent at Buick, 7.Trio percent at GMC and twenty two percent at Cadillac. GM’s retail volume — which has remained strong in latest months — fell fourteen percent to 202,220 in July.
GM said it slashed July sales to rental car customers in the U.S. by eighty percent compared with a year ago, to just over Two,700 vehicles, while enhancing shipments to commercial fleets. U.S. commercial vehicle fleet deliveries rose by forty percent in July to 17,300 vehicles, GM said, noting commercial sales can be as profitable as retail volume.
Fleet deliveries accounted for about eleven percent of total July volume, GM said.
The company’s average transaction price in the U.S. rose almost $1,000 to about $36,000 last month compared with July 2016.
«We have strategically determined to reduce car production rather than increase incentive spending or dump vehicles into daily rental fleets, like some of our competitors,» Kurt McNeil, GM’s head of U.S. sales operations, said in a statement. «We are working hard to protect the residual values of our fresh products and growing quality retail and commercial sales, and July`s ATPs reflect that discipline.»
Toyota Motor Sales U.S.A.’s monthly build up — only its 2nd of the year — reflected increases of Four.Three percent at the Toyota brand and Three.6 percent at Lexus.
At Nissan North America, volume dropped Four.1 percent at the Nissan brand and Infiniti volume rose nine percent. July is only the 2nd month this year that Nissan’s U.S. deliveries have declined as the company resumes to build up share in a down market.
FCA US’ July sales fell behind a six percent decline in retail volume and thirty five percent reduction in fleet business. Ram and Alfa Romeo were the only two FCA brands to post higher sales last month, with volume off twelve percent at Jeep, thirty percent at the Chrysler brand and twelve percent at Dodge.
Volume dropped 1.7 percent at the Honda brand and rose Trio.7 percent at Acura. Overall, American Honda truck sales slipped Four.Two percent and car deliveries edged up 1.9 percent.
Among other automakers, July volume dropped Five.9 percent at Kia, Five.8 percent at the Volkswagen brand and three percent at Mazda. Deliveries rose 6.9 percent at Subaru and 1.7 percent at Mitsubishi.
In addition to Lexus and Infiniti, other luxury brands with July gains were Audi, up Two.Five percent, and Porsche, up 0.6 percent. Volume dropped fifteen percent at the BMW brand, ten percent at Mercedes, nineteen percent at Volvo, seven percent at Jaguar and Two.6 percent at Range Rover.
Analysts say sales in the 2nd half of the year will pivot on extra incentive spending and production.
«Through the very first six months of the year, the SAAR has averaged just 16.9 million units, below the 17.2-million-unit tempo of the very first half of 2016,” said Christopher Hopson, manager of North America light-vehicle forecasting for IHS Markit. “We expect some rebound from the sales rhythm in the very first half of the year, but overall light vehicle request does seem to be stuck in neutral.”
Hopson said IHS Markit has cut its forecast for industrywide U.S. sales in two thousand seventeen to 17.1 million from 17.Trio million units.
J.D. Power says incentives averaged $Three,876 per fresh vehicle in the very first two weeks of July, a high for the month and an increase of 7.8 percent from the previous July record set in 2016.
ALG estimates new-vehicle incentives in the U.S. averaged $Three,565 last month, or Four.7 percent higher than July 2016. GM, FCA, Ford and Nissan were the fattest spenders on discounts last month, ALG found. (See chart below.)
Even with slowing sales and rising incentives, automakers have managed to post solid profits because of rising transaction prices and the sustained consumer shift from cars to more profitable crossovers and SUVs.
Kelley Blue Book estimates the average transaction price for light vehicles in the United States was $34,721 in July, an increase of $573, or 1.7 percent, from July 2016, yet down 0.Three percent from June.
“Despite modest sales growth for SUVs in a down market, transaction prices in these segments are not particularly strong, with compact SUVs up just one percent and midsize SUVs plane,” KBB’s Fleming said.
Barclays analyst Brian Johnson, noting that average transaction prices were up only 0.1 percent in mid-July, said the industry may be close to posting its very first decline in monthly average transaction prices since the 2008-09 market collapse.
“With competition further intensifying in the SUV markets, it’s possible that the era of rising ATPs may be over, even in spite of positive mix,” Johnson said in a note to investors last week. “Interestingly, mid-month data shows that GM has pulled back on incentives fairly significantly, even in spite of its elevated inventory situation.”
GM’s inventory rose to its highest level in a decade after its U.S. sales fell Four.7 percent in June.
GM is deliberately padding stocks as it prepares to idle several assembly plants for retooling and the introduction of fresh large pickups. But instead of the 90-day supply of fresh vehicles it had targeted at mid-year, it had a 104-day supply at month’s end, down slightly from the end of June.
GM CFO Chuck Stevens told investors last month the company remains on track to reach a toughly 70-day supply by year’s end.
Sales drop 7% behind dips at Detroit Trio, Nissan, Honda
Sales drop 7% behind dips at Detroit Trio, Nissan, Honda
Numbers in this table are calculated by Automotive News based on actual monthly sales reported by the manufacturers and may differ from numbers reported elsewhere.
Source: Automotive News Data Center
**Renault-Nissan acquired controlling interest in Mitsubishi Motors on Oct. 20, 2016.
***Reflects Aston Martin, Ferrari and Lotus sales.
CANADA: GM, Nissan, Toyota volumes advance
U.S. light-vehicle sales dropped 6.9 percent in July, the weakest showcasing yet in a year that is on track to generate the industry’s very first decline in volume since the 2008-09 market collapse.
The seasonally adjusted, annualized sales rate fell to 16.78 million last month, down sharply from 17.82 million in July 2016. The SAAR has now fallen below seventeen million three consecutive months, based on revised factors released by the Bureau of Economic Analysis on Tuesday.
July marked the seventh consecutive monthly decline in industry volume, even as automakers pile on fatter deals and the general U.S. economy resumes to grow and unemployment remains low.
Car sales fell fifteen percent and truck volume dropped 1.9 percent, the 2nd monthly decline for popular pickups, crossovers and SUVs this year.
Volume is now down Two.9 percent through July, mostly on lower car and fleet deliveries.
Ford, General Motors, FCA, Nissan, Honda and Hyundai-Kia all witnessed request drop last month behind sharply lower fleet and car sales. Retail deliveries were also spotty for some automakers.
Among major automakers, there was one exception to the broad decline: Toyota, which tallied a three percent build up. Subaru continued to defy gravity in posting a 6.9 percent build up.
This July had one less selling day than July of 2016.
Ford`s 7.Four percent setback marked its fattest drop of 2017. The same went for GM, down fifteen percent, as it held to a strategy of reducing sales to rental fleets. Fiat Chrysler fell 9.Five percent. Nissan backstepped for the 2nd time this year, down three percent.
At American Honda, volume dropped 1.Two percent.
Ford Motor said retail sales in the U.S. last month slipped one percent to 159,492 light vehicles. The company’s U.S. sales have now declined every month this year but one, May.
At GM, sales dropped fifteen percent at Chevrolet, thirty one percent at Buick, 7.Trio percent at GMC and twenty two percent at Cadillac. GM’s retail volume — which has remained strong in latest months — fell fourteen percent to 202,220 in July.
GM said it slashed July sales to rental car customers in the U.S. by eighty percent compared with a year ago, to just over Two,700 vehicles, while enlargening shipments to commercial fleets. U.S. commercial vehicle fleet deliveries rose by forty percent in July to 17,300 vehicles, GM said, noting commercial sales can be as profitable as retail volume.
Fleet deliveries accounted for about eleven percent of total July volume, GM said.
The company’s average transaction price in the U.S. rose almost $1,000 to about $36,000 last month compared with July 2016.
«We have strategically determined to reduce car production rather than increase incentive spending or dump vehicles into daily rental fleets, like some of our competitors,» Kurt McNeil, GM’s head of U.S. sales operations, said in a statement. «We are working hard to protect the residual values of our fresh products and growing quality retail and commercial sales, and July`s ATPs reflect that discipline.»
Toyota Motor Sales U.S.A.’s monthly build up — only its 2nd of the year — reflected increases of Four.Three percent at the Toyota brand and Three.6 percent at Lexus.
At Nissan North America, volume dropped Four.1 percent at the Nissan brand and Infiniti volume rose nine percent. July is only the 2nd month this year that Nissan’s U.S. deliveries have declined as the company resumes to build up share in a down market.
FCA US’ July sales fell behind a six percent decline in retail volume and thirty five percent reduction in fleet business. Ram and Alfa Romeo were the only two FCA brands to post higher sales last month, with volume off twelve percent at Jeep, thirty percent at the Chrysler brand and twelve percent at Dodge.
Volume dropped 1.7 percent at the Honda brand and rose Trio.7 percent at Acura. Overall, American Honda truck sales slipped Four.Two percent and car deliveries edged up 1.9 percent.
Among other automakers, July volume dropped Five.9 percent at Kia, Five.8 percent at the Volkswagen brand and three percent at Mazda. Deliveries rose 6.9 percent at Subaru and 1.7 percent at Mitsubishi.
In addition to Lexus and Infiniti, other luxury brands with July gains were Audi, up Two.Five percent, and Porsche, up 0.6 percent. Volume dropped fifteen percent at the BMW brand, ten percent at Mercedes, nineteen percent at Volvo, seven percent at Jaguar and Two.6 percent at Range Rover.
Analysts say sales in the 2nd half of the year will pivot on extra incentive spending and production.
«Through the very first six months of the year, the SAAR has averaged just 16.9 million units, below the 17.2-million-unit tempo of the very first half of 2016,” said Christopher Hopson, manager of North America light-vehicle forecasting for IHS Markit. “We expect some rebound from the sales tempo in the very first half of the year, but overall light vehicle request does seem to be stuck in neutral.”
Hopson said IHS Markit has cut its forecast for industrywide U.S. sales in two thousand seventeen to 17.1 million from 17.Trio million units.
J.D. Power says incentives averaged $Three,876 per fresh vehicle in the very first two weeks of July, a high for the month and an increase of 7.8 percent from the previous July record set in 2016.
ALG estimates new-vehicle incentives in the U.S. averaged $Trio,565 last month, or Four.7 percent higher than July 2016. GM, FCA, Ford and Nissan were the fattest spenders on discounts last month, ALG found. (See chart below.)
Even with slowing sales and rising incentives, automakers have managed to post solid profits because of rising transaction prices and the stable consumer shift from cars to more profitable crossovers and SUVs.
Kelley Blue Book estimates the average transaction price for light vehicles in the United States was $34,721 in July, an increase of $573, or 1.7 percent, from July 2016, yet down 0.Trio percent from June.
“Despite modest sales growth for SUVs in a down market, transaction prices in these segments are not particularly strong, with compact SUVs up just one percent and midsize SUVs plane,” KBB’s Fleming said.
Barclays analyst Brian Johnson, noting that average transaction prices were up only 0.1 percent in mid-July, said the industry may be close to posting its very first decline in monthly average transaction prices since the 2008-09 market collapse.
“With competition further intensifying in the SUV markets, it’s possible that the era of rising ATPs may be over, even in spite of positive mix,” Johnson said in a note to investors last week. “Interestingly, mid-month data shows that GM has pulled back on incentives fairly significantly, even in spite of its elevated inventory situation.”
GM’s inventory rose to its highest level in a decade after its U.S. sales fell Four.7 percent in June.
GM is deliberately padding stocks as it prepares to idle several assembly plants for retooling and the introduction of fresh large pickups. But instead of the 90-day supply of fresh vehicles it had targeted at mid-year, it had a 104-day supply at month’s end, down slightly from the end of June.
GM CFO Chuck Stevens told investors last month the company remains on track to reach a toughly 70-day supply by year’s end.
Sales drop 7% behind dips at Detroit Trio, Nissan, Honda
Sales drop 7% behind dips at Detroit Trio, Nissan, Honda
Numbers in this table are calculated by Automotive News based on actual monthly sales reported by the manufacturers and may differ from numbers reported elsewhere.
Source: Automotive News Data Center
**Renault-Nissan acquired controlling interest in Mitsubishi Motors on Oct. 20, 2016.
***Reflects Aston Martin, Ferrari and Lotus sales.
CANADA: GM, Nissan, Toyota volumes advance
U.S. light-vehicle sales dropped 6.9 percent in July, the weakest showcasing yet in a year that is on track to generate the industry’s very first decline in volume since the 2008-09 market collapse.
The seasonally adjusted, annualized sales rate fell to 16.78 million last month, down sharply from 17.82 million in July 2016. The SAAR has now fallen below seventeen million three consecutive months, based on revised factors released by the Bureau of Economic Analysis on Tuesday.
July marked the seventh consecutive monthly decline in industry volume, even as automakers pile on thicker deals and the general U.S. economy resumes to grow and unemployment remains low.
Car sales fell fifteen percent and truck volume dropped 1.9 percent, the 2nd monthly decline for popular pickups, crossovers and SUVs this year.
Volume is now down Two.9 percent through July, mostly on lower car and fleet deliveries.
Ford, General Motors, FCA, Nissan, Honda and Hyundai-Kia all eyed request drop last month behind sharply lower fleet and car sales. Retail deliveries were also spotty for some automakers.
Among major automakers, there was one exception to the broad decline: Toyota, which tallied a three percent build up. Subaru continued to defy gravity in posting a 6.9 percent build up.
This July had one less selling day than July of 2016.
Ford`s 7.Four percent setback marked its largest drop of 2017. The same went for GM, down fifteen percent, as it held to a strategy of reducing sales to rental fleets. Fiat Chrysler fell 9.Five percent. Nissan backstepped for the 2nd time this year, down three percent.
At American Honda, volume dropped 1.Two percent.
Ford Motor said retail sales in the U.S. last month slipped one percent to 159,492 light vehicles. The company’s U.S. sales have now declined every month this year but one, May.
At GM, sales dropped fifteen percent at Chevrolet, thirty one percent at Buick, 7.Trio percent at GMC and twenty two percent at Cadillac. GM’s retail volume — which has remained strong in latest months — fell fourteen percent to 202,220 in July.
GM said it slashed July sales to rental car customers in the U.S. by eighty percent compared with a year ago, to just over Two,700 vehicles, while enhancing shipments to commercial fleets. U.S. commercial vehicle fleet deliveries rose by forty percent in July to 17,300 vehicles, GM said, noting commercial sales can be as profitable as retail volume.
Fleet deliveries accounted for about eleven percent of total July volume, GM said.
The company’s average transaction price in the U.S. rose almost $1,000 to about $36,000 last month compared with July 2016.
«We have strategically determined to reduce car production rather than increase incentive spending or dump vehicles into daily rental fleets, like some of our competitors,» Kurt McNeil, GM’s head of U.S. sales operations, said in a statement. «We are working hard to protect the residual values of our fresh products and growing quality retail and commercial sales, and July`s ATPs reflect that discipline.»
Toyota Motor Sales U.S.A.’s monthly build up — only its 2nd of the year — reflected increases of Four.Trio percent at the Toyota brand and Three.6 percent at Lexus.
At Nissan North America, volume dropped Four.1 percent at the Nissan brand and Infiniti volume rose nine percent. July is only the 2nd month this year that Nissan’s U.S. deliveries have declined as the company proceeds to build up share in a down market.
FCA US’ July sales fell behind a six percent decline in retail volume and thirty five percent reduction in fleet business. Ram and Alfa Romeo were the only two FCA brands to post higher sales last month, with volume off twelve percent at Jeep, thirty percent at the Chrysler brand and twelve percent at Dodge.
Volume dropped 1.7 percent at the Honda brand and rose Three.7 percent at Acura. Overall, American Honda truck sales slipped Four.Two percent and car deliveries edged up 1.9 percent.
Among other automakers, July volume dropped Five.9 percent at Kia, Five.8 percent at the Volkswagen brand and three percent at Mazda. Deliveries rose 6.9 percent at Subaru and 1.7 percent at Mitsubishi.
In addition to Lexus and Infiniti, other luxury brands with July gains were Audi, up Two.Five percent, and Porsche, up 0.6 percent. Volume dropped fifteen percent at the BMW brand, ten percent at Mercedes, nineteen percent at Volvo, seven percent at Jaguar and Two.6 percent at Range Rover.
Analysts say sales in the 2nd half of the year will pivot on extra incentive spending and production.
«Through the very first six months of the year, the SAAR has averaged just 16.9 million units, below the 17.2-million-unit tempo of the very first half of 2016,” said Christopher Hopson, manager of North America light-vehicle forecasting for IHS Markit. “We expect some rebound from the sales tempo in the very first half of the year, but overall light vehicle request does seem to be stuck in neutral.”
Hopson said IHS Markit has cut its forecast for industrywide U.S. sales in two thousand seventeen to 17.1 million from 17.Three million units.
J.D. Power says incentives averaged $Three,876 per fresh vehicle in the very first two weeks of July, a high for the month and an increase of 7.8 percent from the previous July record set in 2016.
ALG estimates new-vehicle incentives in the U.S. averaged $Three,565 last month, or Four.7 percent higher than July 2016. GM, FCA, Ford and Nissan were the thickest spenders on discounts last month, ALG found. (See chart below.)
Even with slowing sales and rising incentives, automakers have managed to post solid profits because of rising transaction prices and the constant consumer shift from cars to more profitable crossovers and SUVs.
Kelley Blue Book estimates the average transaction price for light vehicles in the United States was $34,721 in July, an increase of $573, or 1.7 percent, from July 2016, yet down 0.Trio percent from June.
“Despite modest sales growth for SUVs in a down market, transaction prices in these segments are not particularly strong, with compact SUVs up just one percent and midsize SUVs vapid,” KBB’s Fleming said.
Barclays analyst Brian Johnson, noting that average transaction prices were up only 0.1 percent in mid-July, said the industry may be close to posting its very first decline in monthly average transaction prices since the 2008-09 market collapse.
“With competition further intensifying in the SUV markets, it’s possible that the era of rising ATPs may be over, even in spite of positive mix,” Johnson said in a note to investors last week. “Interestingly, mid-month data shows that GM has pulled back on incentives fairly significantly, even in spite of its elevated inventory situation.”
GM’s inventory rose to its highest level in a decade after its U.S. sales fell Four.7 percent in June.
GM is deliberately padding stocks as it prepares to idle several assembly plants for retooling and the introduction of fresh large pickups. But instead of the 90-day supply of fresh vehicles it had targeted at mid-year, it had a 104-day supply at month’s end, down slightly from the end of June.
GM CFO Chuck Stevens told investors last month the company remains on track to reach a harshly 70-day supply by year’s end.
Sales drop 7% behind dips at Detroit Trio, Nissan, Honda
Sales drop 7% behind dips at Detroit Trio, Nissan, Honda
Numbers in this table are calculated by Automotive News based on actual monthly sales reported by the manufacturers and may differ from numbers reported elsewhere.
Source: Automotive News Data Center
**Renault-Nissan acquired controlling interest in Mitsubishi Motors on Oct. 20, 2016.
***Reflects Aston Martin, Ferrari and Lotus sales.
CANADA: GM, Nissan, Toyota volumes advance
U.S. light-vehicle sales dropped 6.9 percent in July, the weakest demonstrating yet in a year that is on track to generate the industry’s very first decline in volume since the 2008-09 market collapse.
The seasonally adjusted, annualized sales rate fell to 16.78 million last month, down sharply from 17.82 million in July 2016. The SAAR has now fallen below seventeen million three consecutive months, based on revised factors released by the Bureau of Economic Analysis on Tuesday.
July marked the seventh consecutive monthly decline in industry volume, even as automakers pile on thicker deals and the general U.S. economy resumes to grow and unemployment remains low.
Car sales fell fifteen percent and truck volume dropped 1.9 percent, the 2nd monthly decline for popular pickups, crossovers and SUVs this year.
Volume is now down Two.9 percent through July, mostly on lower car and fleet deliveries.
Ford, General Motors, FCA, Nissan, Honda and Hyundai-Kia all spotted request drop last month behind sharply lower fleet and car sales. Retail deliveries were also spotty for some automakers.
Among major automakers, there was one exception to the broad decline: Toyota, which tallied a three percent build up. Subaru continued to defy gravity in posting a 6.9 percent build up.
This July had one less selling day than July of 2016.
Ford`s 7.Four percent setback marked its largest drop of 2017. The same went for GM, down fifteen percent, as it held to a strategy of reducing sales to rental fleets. Fiat Chrysler fell 9.Five percent. Nissan backstepped for the 2nd time this year, down three percent.
At American Honda, volume dropped 1.Two percent.
Ford Motor said retail sales in the U.S. last month slipped one percent to 159,492 light vehicles. The company’s U.S. sales have now declined every month this year but one, May.
At GM, sales dropped fifteen percent at Chevrolet, thirty one percent at Buick, 7.Three percent at GMC and twenty two percent at Cadillac. GM’s retail volume — which has remained strong in latest months — fell fourteen percent to 202,220 in July.
GM said it slashed July sales to rental car customers in the U.S. by eighty percent compared with a year ago, to just over Two,700 vehicles, while enlargening shipments to commercial fleets. U.S. commercial vehicle fleet deliveries rose by forty percent in July to 17,300 vehicles, GM said, noting commercial sales can be as profitable as retail volume.
Fleet deliveries accounted for about eleven percent of total July volume, GM said.
The company’s average transaction price in the U.S. rose almost $1,000 to about $36,000 last month compared with July 2016.
«We have strategically determined to reduce car production rather than increase incentive spending or dump vehicles into daily rental fleets, like some of our competitors,» Kurt McNeil, GM’s head of U.S. sales operations, said in a statement. «We are working hard to protect the residual values of our fresh products and growing quality retail and commercial sales, and July`s ATPs reflect that discipline.»
Toyota Motor Sales U.S.A.’s monthly build up — only its 2nd of the year — reflected increases of Four.Three percent at the Toyota brand and Trio.6 percent at Lexus.
At Nissan North America, volume dropped Four.1 percent at the Nissan brand and Infiniti volume rose nine percent. July is only the 2nd month this year that Nissan’s U.S. deliveries have declined as the company resumes to build up share in a down market.
FCA US’ July sales fell behind a six percent decline in retail volume and thirty five percent reduction in fleet business. Ram and Alfa Romeo were the only two FCA brands to post higher sales last month, with volume off twelve percent at Jeep, thirty percent at the Chrysler brand and twelve percent at Dodge.
Volume dropped 1.7 percent at the Honda brand and rose Three.7 percent at Acura. Overall, American Honda truck sales slipped Four.Two percent and car deliveries edged up 1.9 percent.
Among other automakers, July volume dropped Five.9 percent at Kia, Five.8 percent at the Volkswagen brand and three percent at Mazda. Deliveries rose 6.9 percent at Subaru and 1.7 percent at Mitsubishi.
In addition to Lexus and Infiniti, other luxury brands with July gains were Audi, up Two.Five percent, and Porsche, up 0.6 percent. Volume dropped fifteen percent at the BMW brand, ten percent at Mercedes, nineteen percent at Volvo, seven percent at Jaguar and Two.6 percent at Range Rover.
Analysts say sales in the 2nd half of the year will pivot on extra incentive spending and production.
«Through the very first six months of the year, the SAAR has averaged just 16.9 million units, below the 17.2-million-unit tempo of the very first half of 2016,” said Christopher Hopson, manager of North America light-vehicle forecasting for IHS Markit. “We expect some rebound from the sales tempo in the very first half of the year, but overall light vehicle request does seem to be stuck in neutral.”
Hopson said IHS Markit has cut its forecast for industrywide U.S. sales in two thousand seventeen to 17.1 million from 17.Three million units.
J.D. Power says incentives averaged $Three,876 per fresh vehicle in the very first two weeks of July, a high for the month and an increase of 7.8 percent from the previous July record set in 2016.
ALG estimates new-vehicle incentives in the U.S. averaged $Three,565 last month, or Four.7 percent higher than July 2016. GM, FCA, Ford and Nissan were the fattest spenders on discounts last month, ALG found. (See chart below.)
Even with slowing sales and rising incentives, automakers have managed to post solid profits because of rising transaction prices and the constant consumer shift from cars to more profitable crossovers and SUVs.
Kelley Blue Book estimates the average transaction price for light vehicles in the United States was $34,721 in July, an increase of $573, or 1.7 percent, from July 2016, yet down 0.Trio percent from June.
“Despite modest sales growth for SUVs in a down market, transaction prices in these segments are not particularly strong, with compact SUVs up just one percent and midsize SUVs plane,” KBB’s Fleming said.
Barclays analyst Brian Johnson, noting that average transaction prices were up only 0.1 percent in mid-July, said the industry may be close to posting its very first decline in monthly average transaction prices since the 2008-09 market collapse.
“With competition further intensifying in the SUV markets, it’s possible that the era of rising ATPs may be over, even in spite of positive mix,” Johnson said in a note to investors last week. “Interestingly, mid-month data shows that GM has pulled back on incentives fairly significantly, even in spite of its elevated inventory situation.”
GM’s inventory rose to its highest level in a decade after its U.S. sales fell Four.7 percent in June.
GM is deliberately padding stocks as it prepares to idle several assembly plants for retooling and the introduction of fresh large pickups. But instead of the 90-day supply of fresh vehicles it had targeted at mid-year, it had a 104-day supply at month’s end, down slightly from the end of June.
GM CFO Chuck Stevens told investors last month the company remains on track to reach a harshly 70-day supply by year’s end.
Sales drop 7% behind dips at Detroit Three, Nissan, Honda
Sales drop 7% behind dips at Detroit Three, Nissan, Honda
Numbers in this table are calculated by Automotive News based on actual monthly sales reported by the manufacturers and may differ from numbers reported elsewhere.
Source: Automotive News Data Center
**Renault-Nissan acquired controlling interest in Mitsubishi Motors on Oct. 20, 2016.
***Reflects Aston Martin, Ferrari and Lotus sales.
CANADA: GM, Nissan, Toyota volumes advance
U.S. light-vehicle sales dropped 6.9 percent in July, the weakest demonstrating yet in a year that is on track to generate the industry’s very first decline in volume since the 2008-09 market collapse.
The seasonally adjusted, annualized sales rate fell to 16.78 million last month, down sharply from 17.82 million in July 2016. The SAAR has now fallen below seventeen million three consecutive months, based on revised factors released by the Bureau of Economic Analysis on Tuesday.
July marked the seventh consecutive monthly decline in industry volume, even as automakers pile on thicker deals and the general U.S. economy resumes to grow and unemployment remains low.
Car sales fell fifteen percent and truck volume dropped 1.9 percent, the 2nd monthly decline for popular pickups, crossovers and SUVs this year.
Volume is now down Two.9 percent through July, mostly on lower car and fleet deliveries.
Ford, General Motors, FCA, Nissan, Honda and Hyundai-Kia all witnessed request drop last month behind sharply lower fleet and car sales. Retail deliveries were also spotty for some automakers.
Among major automakers, there was one exception to the broad decline: Toyota, which tallied a three percent build up. Subaru continued to defy gravity in posting a 6.9 percent build up.
This July had one less selling day than July of 2016.
Ford`s 7.Four percent setback marked its fattest drop of 2017. The same went for GM, down fifteen percent, as it held to a strategy of reducing sales to rental fleets. Fiat Chrysler fell 9.Five percent. Nissan backstepped for the 2nd time this year, down three percent.
At American Honda, volume dropped 1.Two percent.
Ford Motor said retail sales in the U.S. last month slipped one percent to 159,492 light vehicles. The company’s U.S. sales have now declined every month this year but one, May.
At GM, sales dropped fifteen percent at Chevrolet, thirty one percent at Buick, 7.Trio percent at GMC and twenty two percent at Cadillac. GM’s retail volume — which has remained strong in latest months — fell fourteen percent to 202,220 in July.
GM said it slashed July sales to rental car customers in the U.S. by eighty percent compared with a year ago, to just over Two,700 vehicles, while enhancing shipments to commercial fleets. U.S. commercial vehicle fleet deliveries rose by forty percent in July to 17,300 vehicles, GM said, noting commercial sales can be as profitable as retail volume.
Fleet deliveries accounted for about eleven percent of total July volume, GM said.
The company’s average transaction price in the U.S. rose almost $1,000 to about $36,000 last month compared with July 2016.
«We have strategically determined to reduce car production rather than increase incentive spending or dump vehicles into daily rental fleets, like some of our competitors,» Kurt McNeil, GM’s head of U.S. sales operations, said in a statement. «We are working hard to protect the residual values of our fresh products and growing quality retail and commercial sales, and July`s ATPs reflect that discipline.»
Toyota Motor Sales U.S.A.’s monthly build up — only its 2nd of the year — reflected increases of Four.Trio percent at the Toyota brand and Trio.6 percent at Lexus.
At Nissan North America, volume dropped Four.1 percent at the Nissan brand and Infiniti volume rose nine percent. July is only the 2nd month this year that Nissan’s U.S. deliveries have declined as the company proceeds to build up share in a down market.
FCA US’ July sales fell behind a six percent decline in retail volume and thirty five percent reduction in fleet business. Ram and Alfa Romeo were the only two FCA brands to post higher sales last month, with volume off twelve percent at Jeep, thirty percent at the Chrysler brand and twelve percent at Dodge.
Volume dropped 1.7 percent at the Honda brand and rose Three.7 percent at Acura. Overall, American Honda truck sales slipped Four.Two percent and car deliveries edged up 1.9 percent.
Among other automakers, July volume dropped Five.9 percent at Kia, Five.8 percent at the Volkswagen brand and three percent at Mazda. Deliveries rose 6.9 percent at Subaru and 1.7 percent at Mitsubishi.
In addition to Lexus and Infiniti, other luxury brands with July gains were Audi, up Two.Five percent, and Porsche, up 0.6 percent. Volume dropped fifteen percent at the BMW brand, ten percent at Mercedes, nineteen percent at Volvo, seven percent at Jaguar and Two.6 percent at Range Rover.
Analysts say sales in the 2nd half of the year will pivot on extra incentive spending and production.
«Through the very first six months of the year, the SAAR has averaged just 16.9 million units, below the 17.2-million-unit tempo of the very first half of 2016,” said Christopher Hopson, manager of North America light-vehicle forecasting for IHS Markit. “We expect some rebound from the sales rhythm in the very first half of the year, but overall light vehicle request does seem to be stuck in neutral.”
Hopson said IHS Markit has cut its forecast for industrywide U.S. sales in two thousand seventeen to 17.1 million from 17.Three million units.
J.D. Power says incentives averaged $Trio,876 per fresh vehicle in the very first two weeks of July, a high for the month and an increase of 7.8 percent from the previous July record set in 2016.
ALG estimates new-vehicle incentives in the U.S. averaged $Trio,565 last month, or Four.7 percent higher than July 2016. GM, FCA, Ford and Nissan were the fattest spenders on discounts last month, ALG found. (See chart below.)
Even with slowing sales and rising incentives, automakers have managed to post solid profits because of rising transaction prices and the stable consumer shift from cars to more profitable crossovers and SUVs.
Kelley Blue Book estimates the average transaction price for light vehicles in the United States was $34,721 in July, an increase of $573, or 1.7 percent, from July 2016, yet down 0.Trio percent from June.
“Despite modest sales growth for SUVs in a down market, transaction prices in these segments are not particularly strong, with compact SUVs up just one percent and midsize SUVs plane,” KBB’s Fleming said.
Barclays analyst Brian Johnson, noting that average transaction prices were up only 0.1 percent in mid-July, said the industry may be close to posting its very first decline in monthly average transaction prices since the 2008-09 market collapse.
“With competition further intensifying in the SUV markets, it’s possible that the era of rising ATPs may be over, even in spite of positive mix,” Johnson said in a note to investors last week. “Interestingly, mid-month data shows that GM has pulled back on incentives fairly significantly, even in spite of its elevated inventory situation.”
GM’s inventory rose to its highest level in a decade after its U.S. sales fell Four.7 percent in June.
GM is deliberately padding stocks as it prepares to idle several assembly plants for retooling and the introduction of fresh large pickups. But instead of the 90-day supply of fresh vehicles it had targeted at mid-year, it had a 104-day supply at month’s end, down slightly from the end of June.
GM CFO Chuck Stevens told investors last month the company remains on track to reach a toughly 70-day supply by year’s end.
Sales drop 7% behind dips at Detroit Three, Nissan, Honda
Sales drop 7% behind dips at Detroit Trio, Nissan, Honda
Numbers in this table are calculated by Automotive News based on actual monthly sales reported by the manufacturers and may differ from numbers reported elsewhere.
Source: Automotive News Data Center
**Renault-Nissan acquired controlling interest in Mitsubishi Motors on Oct. 20, 2016.
***Reflects Aston Martin, Ferrari and Lotus sales.
CANADA: GM, Nissan, Toyota volumes advance
U.S. light-vehicle sales dropped 6.9 percent in July, the weakest showcasing yet in a year that is on track to generate the industry’s very first decline in volume since the 2008-09 market collapse.
The seasonally adjusted, annualized sales rate fell to 16.78 million last month, down sharply from 17.82 million in July 2016. The SAAR has now fallen below seventeen million three consecutive months, based on revised factors released by the Bureau of Economic Analysis on Tuesday.
July marked the seventh consecutive monthly decline in industry volume, even as automakers pile on thicker deals and the general U.S. economy resumes to grow and unemployment remains low.
Car sales fell fifteen percent and truck volume dropped 1.9 percent, the 2nd monthly decline for popular pickups, crossovers and SUVs this year.
Volume is now down Two.9 percent through July, mostly on lower car and fleet deliveries.
Ford, General Motors, FCA, Nissan, Honda and Hyundai-Kia all spotted request drop last month behind sharply lower fleet and car sales. Retail deliveries were also spotty for some automakers.
Among major automakers, there was one exception to the broad decline: Toyota, which tallied a three percent build up. Subaru continued to defy gravity in posting a 6.9 percent build up.
This July had one less selling day than July of 2016.
Ford`s 7.Four percent setback marked its fattest drop of 2017. The same went for GM, down fifteen percent, as it held to a strategy of reducing sales to rental fleets. Fiat Chrysler fell 9.Five percent. Nissan backstepped for the 2nd time this year, down three percent.
At American Honda, volume dropped 1.Two percent.
Ford Motor said retail sales in the U.S. last month slipped one percent to 159,492 light vehicles. The company’s U.S. sales have now declined every month this year but one, May.
At GM, sales dropped fifteen percent at Chevrolet, thirty one percent at Buick, 7.Trio percent at GMC and twenty two percent at Cadillac. GM’s retail volume — which has remained strong in latest months — fell fourteen percent to 202,220 in July.
GM said it slashed July sales to rental car customers in the U.S. by eighty percent compared with a year ago, to just over Two,700 vehicles, while enlargening shipments to commercial fleets. U.S. commercial vehicle fleet deliveries rose by forty percent in July to 17,300 vehicles, GM said, noting commercial sales can be as profitable as retail volume.
Fleet deliveries accounted for about eleven percent of total July volume, GM said.
The company’s average transaction price in the U.S. rose almost $1,000 to about $36,000 last month compared with July 2016.
«We have strategically determined to reduce car production rather than increase incentive spending or dump vehicles into daily rental fleets, like some of our competitors,» Kurt McNeil, GM’s head of U.S. sales operations, said in a statement. «We are working hard to protect the residual values of our fresh products and growing quality retail and commercial sales, and July`s ATPs reflect that discipline.»
Toyota Motor Sales U.S.A.’s monthly build up — only its 2nd of the year — reflected increases of Four.Trio percent at the Toyota brand and Three.6 percent at Lexus.
At Nissan North America, volume dropped Four.1 percent at the Nissan brand and Infiniti volume rose nine percent. July is only the 2nd month this year that Nissan’s U.S. deliveries have declined as the company resumes to build up share in a down market.
FCA US’ July sales fell behind a six percent decline in retail volume and thirty five percent reduction in fleet business. Ram and Alfa Romeo were the only two FCA brands to post higher sales last month, with volume off twelve percent at Jeep, thirty percent at the Chrysler brand and twelve percent at Dodge.
Volume dropped 1.7 percent at the Honda brand and rose Three.7 percent at Acura. Overall, American Honda truck sales slipped Four.Two percent and car deliveries edged up 1.9 percent.
Among other automakers, July volume dropped Five.9 percent at Kia, Five.8 percent at the Volkswagen brand and three percent at Mazda. Deliveries rose 6.9 percent at Subaru and 1.7 percent at Mitsubishi.
In addition to Lexus and Infiniti, other luxury brands with July gains were Audi, up Two.Five percent, and Porsche, up 0.6 percent. Volume dropped fifteen percent at the BMW brand, ten percent at Mercedes, nineteen percent at Volvo, seven percent at Jaguar and Two.6 percent at Range Rover.
Analysts say sales in the 2nd half of the year will pivot on extra incentive spending and production.
«Through the very first six months of the year, the SAAR has averaged just 16.9 million units, below the 17.2-million-unit tempo of the very first half of 2016,” said Christopher Hopson, manager of North America light-vehicle forecasting for IHS Markit. “We expect some rebound from the sales tempo in the very first half of the year, but overall light vehicle request does seem to be stuck in neutral.”
Hopson said IHS Markit has cut its forecast for industrywide U.S. sales in two thousand seventeen to 17.1 million from 17.Trio million units.
J.D. Power says incentives averaged $Trio,876 per fresh vehicle in the very first two weeks of July, a high for the month and an increase of 7.8 percent from the previous July record set in 2016.
ALG estimates new-vehicle incentives in the U.S. averaged $Three,565 last month, or Four.7 percent higher than July 2016. GM, FCA, Ford and Nissan were the fattest spenders on discounts last month, ALG found. (See chart below.)
Even with slowing sales and rising incentives, automakers have managed to post solid profits because of rising transaction prices and the stable consumer shift from cars to more profitable crossovers and SUVs.
Kelley Blue Book estimates the average transaction price for light vehicles in the United States was $34,721 in July, an increase of $573, or 1.7 percent, from July 2016, yet down 0.Three percent from June.
“Despite modest sales growth for SUVs in a down market, transaction prices in these segments are not particularly strong, with compact SUVs up just one percent and midsize SUVs vapid,” KBB’s Fleming said.
Barclays analyst Brian Johnson, noting that average transaction prices were up only 0.1 percent in mid-July, said the industry may be close to posting its very first decline in monthly average transaction prices since the 2008-09 market collapse.
“With competition further intensifying in the SUV markets, it’s possible that the era of rising ATPs may be over, even in spite of positive mix,” Johnson said in a note to investors last week. “Interestingly, mid-month data shows that GM has pulled back on incentives fairly significantly, even in spite of its elevated inventory situation.”
GM’s inventory rose to its highest level in a decade after its U.S. sales fell Four.7 percent in June.
GM is deliberately padding stocks as it prepares to idle several assembly plants for retooling and the introduction of fresh large pickups. But instead of the 90-day supply of fresh vehicles it had targeted at mid-year, it had a 104-day supply at month’s end, down slightly from the end of June.
GM CFO Chuck Stevens told investors last month the company remains on track to reach a harshly 70-day supply by year’s end.
Sales drop 7% behind dips at Detroit Trio, Nissan, Honda
Sales drop 7% behind dips at Detroit Trio, Nissan, Honda
Numbers in this table are calculated by Automotive News based on actual monthly sales reported by the manufacturers and may differ from numbers reported elsewhere.
Source: Automotive News Data Center
**Renault-Nissan acquired controlling interest in Mitsubishi Motors on Oct. 20, 2016.
***Reflects Aston Martin, Ferrari and Lotus sales.
CANADA: GM, Nissan, Toyota volumes advance
U.S. light-vehicle sales dropped 6.9 percent in July, the weakest showcasing yet in a year that is on track to generate the industry’s very first decline in volume since the 2008-09 market collapse.
The seasonally adjusted, annualized sales rate fell to 16.78 million last month, down sharply from 17.82 million in July 2016. The SAAR has now fallen below seventeen million three consecutive months, based on revised factors released by the Bureau of Economic Analysis on Tuesday.
July marked the seventh consecutive monthly decline in industry volume, even as automakers pile on thicker deals and the general U.S. economy resumes to grow and unemployment remains low.
Car sales fell fifteen percent and truck volume dropped 1.9 percent, the 2nd monthly decline for popular pickups, crossovers and SUVs this year.
Volume is now down Two.9 percent through July, mostly on lower car and fleet deliveries.
Ford, General Motors, FCA, Nissan, Honda and Hyundai-Kia all eyed request drop last month behind sharply lower fleet and car sales. Retail deliveries were also spotty for some automakers.
Among major automakers, there was one exception to the broad decline: Toyota, which tallied a three percent build up. Subaru continued to defy gravity in posting a 6.9 percent build up.
This July had one less selling day than July of 2016.
Ford`s 7.Four percent setback marked its fattest drop of 2017. The same went for GM, down fifteen percent, as it held to a strategy of reducing sales to rental fleets. Fiat Chrysler fell 9.Five percent. Nissan backstepped for the 2nd time this year, down three percent.
At American Honda, volume dropped 1.Two percent.
Ford Motor said retail sales in the U.S. last month slipped one percent to 159,492 light vehicles. The company’s U.S. sales have now declined every month this year but one, May.
At GM, sales dropped fifteen percent at Chevrolet, thirty one percent at Buick, 7.Trio percent at GMC and twenty two percent at Cadillac. GM’s retail volume — which has remained strong in latest months — fell fourteen percent to 202,220 in July.
GM said it slashed July sales to rental car customers in the U.S. by eighty percent compared with a year ago, to just over Two,700 vehicles, while enhancing shipments to commercial fleets. U.S. commercial vehicle fleet deliveries rose by forty percent in July to 17,300 vehicles, GM said, noting commercial sales can be as profitable as retail volume.
Fleet deliveries accounted for about eleven percent of total July volume, GM said.
The company’s average transaction price in the U.S. rose almost $1,000 to about $36,000 last month compared with July 2016.
«We have strategically determined to reduce car production rather than increase incentive spending or dump vehicles into daily rental fleets, like some of our competitors,» Kurt McNeil, GM’s head of U.S. sales operations, said in a statement. «We are working hard to protect the residual values of our fresh products and growing quality retail and commercial sales, and July`s ATPs reflect that discipline.»
Toyota Motor Sales U.S.A.’s monthly build up — only its 2nd of the year — reflected increases of Four.Three percent at the Toyota brand and Three.6 percent at Lexus.
At Nissan North America, volume dropped Four.1 percent at the Nissan brand and Infiniti volume rose nine percent. July is only the 2nd month this year that Nissan’s U.S. deliveries have declined as the company resumes to build up share in a down market.
FCA US’ July sales fell behind a six percent decline in retail volume and thirty five percent reduction in fleet business. Ram and Alfa Romeo were the only two FCA brands to post higher sales last month, with volume off twelve percent at Jeep, thirty percent at the Chrysler brand and twelve percent at Dodge.
Volume dropped 1.7 percent at the Honda brand and rose Trio.7 percent at Acura. Overall, American Honda truck sales slipped Four.Two percent and car deliveries edged up 1.9 percent.
Among other automakers, July volume dropped Five.9 percent at Kia, Five.8 percent at the Volkswagen brand and three percent at Mazda. Deliveries rose 6.9 percent at Subaru and 1.7 percent at Mitsubishi.
In addition to Lexus and Infiniti, other luxury brands with July gains were Audi, up Two.Five percent, and Porsche, up 0.6 percent. Volume dropped fifteen percent at the BMW brand, ten percent at Mercedes, nineteen percent at Volvo, seven percent at Jaguar and Two.6 percent at Range Rover.
Analysts say sales in the 2nd half of the year will pivot on extra incentive spending and production.
«Through the very first six months of the year, the SAAR has averaged just 16.9 million units, below the 17.2-million-unit rhythm of the very first half of 2016,” said Christopher Hopson, manager of North America light-vehicle forecasting for IHS Markit. “We expect some rebound from the sales tempo in the very first half of the year, but overall light vehicle request does seem to be stuck in neutral.”
Hopson said IHS Markit has cut its forecast for industrywide U.S. sales in two thousand seventeen to 17.1 million from 17.Trio million units.
J.D. Power says incentives averaged $Three,876 per fresh vehicle in the very first two weeks of July, a high for the month and an increase of 7.8 percent from the previous July record set in 2016.
ALG estimates new-vehicle incentives in the U.S. averaged $Trio,565 last month, or Four.7 percent higher than July 2016. GM, FCA, Ford and Nissan were the thickest spenders on discounts last month, ALG found. (See chart below.)
Even with slowing sales and rising incentives, automakers have managed to post solid profits because of rising transaction prices and the stable consumer shift from cars to more profitable crossovers and SUVs.
Kelley Blue Book estimates the average transaction price for light vehicles in the United States was $34,721 in July, an increase of $573, or 1.7 percent, from July 2016, yet down 0.Trio percent from June.
“Despite modest sales growth for SUVs in a down market, transaction prices in these segments are not particularly strong, with compact SUVs up just one percent and midsize SUVs vapid,” KBB’s Fleming said.
Barclays analyst Brian Johnson, noting that average transaction prices were up only 0.1 percent in mid-July, said the industry may be close to posting its very first decline in monthly average transaction prices since the 2008-09 market collapse.
“With competition further intensifying in the SUV markets, it’s possible that the era of rising ATPs may be over, even in spite of positive mix,” Johnson said in a note to investors last week. “Interestingly, mid-month data shows that GM has pulled back on incentives fairly significantly, even in spite of its elevated inventory situation.”
GM’s inventory rose to its highest level in a decade after its U.S. sales fell Four.7 percent in June.
GM is deliberately padding stocks as it prepares to idle several assembly plants for retooling and the introduction of fresh large pickups. But instead of the 90-day supply of fresh vehicles it had targeted at mid-year, it had a 104-day supply at month’s end, down slightly from the end of June.
GM CFO Chuck Stevens told investors last month the company remains on track to reach a harshly 70-day supply by year’s end.