The coronavirus outbreak and resulting stay-at-home orders have clobbered the U.S. vehicle market. Enhanced incentives from automakers may be part of a solution.
Global sales fell 23% to 2 million vehicles in the first three months of the year, from 2.6 million in the year-earlier quarter, the company said Wednesday. Operating earnings excluding financial items such as interest and taxes shrank by 81% to 0.9 billion euros from 4.8 billion euros ($5.2 billion) a year earlier.
The coronavirus is changing how people buy cars and get them serviced — behaviors likely to last long after the pandemic is over. Confined by stay-at-home orders, people have discovered that getting a new car delivered is as easy as ordering groceries or takeout. Experts say they may never visit a showroom again, with consequences that will reverberate on every Main Street in America.
Some of the most anticipated vehicles of 2020 were built for pre-coronavirus times. Now that no one is buying, that spells trouble for automakers.
U.S. auto sales are expected to dip 1.3% in October from the same period a year ago, auto consultants J.D. Power and LMC Automotive said on Tuesday, as replacement demand slows following a long bull run since the 2008 financial crisis. The consultancies expect total U.S. vehicle sales of about 1.39 million units for October, with retail sales of new vehicles declining about 1% to 1.13 million units.
Sales of new cars and trucks rose steadily from 2009 to 2016, the longest growth streak since at least before the Great Depression. But sales to individual buyers are now falling. “We are turning down cars and are being more picky on the cars we stock,” says a New York dealer. “We just can’t take more. We’re full.”
U.S. light-vehicle deliveries slipped 0.3% in May, but the robust pace of sales — 17.4 million — offered a sign of hope as the industry barely missed posting its first monthly gain of the year.
Volume likely will rise thanks to a favorable calendar — April has an extra selling day — but the light-vehicle SAAR probably dropped year over year, analysts say, with weaker retail demand offset by higher fleet deliveries.
New vehicle sales in the United States are expected to drop next year as higher interest rates and rising prices prompt consumers to delay purchases, NADA officials predicted Thursday. The dealership trade group estimates sales of 16.8 million new light vehicles in 2019, marking the first time since 2014 that demand could fall below the 17-million mark.
U.S. light-vehicle sales, behind strong light-truck demand and elevated incentives, inched up 0.4% in October, signaling the second-half slowdown that began in July is moderating. FCA, Toyota, the VW Group and the Hyundai Group posted gains while GM, Ford, Honda and Nissan slipped.
Major automakers, with the exception of Fiat Chrysler, posted lower U.S. sales last month behind the ongoing slump in the car market and softer retail demand, even amid elevated incentive levels, signaling an anticipated second-half slowdown continued in September.
Panelists at the TVB Forward conference say broadcasters should be worried as the marketing and advertising budgets of auto makers and dealers are a function of the vehicle sales. The more vehicles sold, the larger the budgets.
U.S. light-vehicle sales in August are expected to rise from year-ago levels, when two major hurricanes crippled new-car transactions in some of the country’s largest vehicle markets, according to three forecasts.
Just five years ago, U.S. vehicle sales were evenly split: 50% cars and 50% light trucks. Now, trucks outsell cars by a ratio of more than 2-to-1, and there’s no sign of a car rebound anytime soon.
U.S. light-vehicle deliveries, behind higher discounts, a surge in light-truck demand and an extra weekend of sales, rose 6.4% in March, topping expectations as the critical spring-selling season started off with a bang. It is the industry’s largest year-over-year increase since monthly volume rose 7% in February 2016.
According to most pure-play station groups, this recent sluggishness by auto dealers has been replicated in their automotive advertising sales, which typically account for around a quarter of their spot revenue. However, some group execs see things improving as the year progresses.
Light-vehicle sales in the United States dropped more than 2% in February as most major automakers posted declines and the market continued to slow down.
Auto forecasting firm LMC Automotive predicts a 2% drop from last February for what is normally one of the weakest sales months of the year. Others forecast an even steeper decline. Among major automakers, only Toyota, Subaru and Volkswagen reported sales gains over last February.
U.S. new light-vehicle sales slipped 5% in December and dipped 1.8% to 17.25 million for all of 2017 — ending a string of seven annual gains that had propelled the industry to new highs following the 2008-09 market collapse.
As automakers seal their first annual U.S. sales decline since 2009, expectations for more interest rate hikes are bolstering the nearly unanimous view that car demand will shrink again in 2018.
It looks like 2018 will be the first time in four years that new-vehicle sales in the United States fall short of 17 million, though the tax reform bill signed into law last week could help.
The increase would be the second straight month for the industry, which before September hadn’t posted positive numbers in any month this year. But analysts say even a strong finish to the year won’t be enough to match last year’s record sales of more than 17.5 million. Still, the industry should finish 2017 close to the record at around 17 million vehicles.
October is on track to be the second-best month of 2017 for U.S. new-vehicle sales, even though volume is projected to fall slightly from the same month last year.
Like a bolt from the blue, the U.S. auto selling pace in September turned hotter than any month in the last 12 years. So what happened in September? Automakers and analysts cite a combination of post-Hurricane Harvey replacement demand, makeup deals from storm-delayed August purchases, higher fleet volume, a five-weekend sales month, attractive new products and more effective incentives aimed at clearing out aging 2017 models. And the more important question: Will it continue?
As Florida dealers braced for Hurricane Irma late last week, battered stores in southeast Texas shifted into super-selling mode. Desperate for transportation in the aftermath of Hurricane Harvey, Houston-area residents suddenly became car buyers.
The devastating impact of Hurricane Harvey will have far-reaching effects on the auto industry, from scrapping flood-damaged vehicles to replenishing dealership inventory. And after the immediate impact of the storm is over, dealers can expect something of a sales boon. That’s because of a typical pattern of auto sales when natural disasters hit an area.
Total TV advertising is now set to decline by 5% in 2017, according to one analyst. MoffettNathanson lowered its annual projection for TV, now factoring in second-quarter TV results, which sank 3.2%
General Motors, Ford, FCA, Nissan and Honda posted U.S. sales declines for July in what is shaping up to be one of the rougher months so far in a down year. Most of the results so far indicate July is shaping up to be a worse month than analysts had forecast. One exception: Toyota Motor Corp., which tallied a 3% gain.
If Santa puts a big red bow on a good number of vehicles in December, automakers will break the all-time record for annual sales. November U.S. auto sales were up 3.7% compared with a year ago, according to Autodata. General Motors and Ford both exceeded analysts’ expectations. Even Volkswagen Group had its first good month since the emissions scandal broke a year ago.
U.S. auto sales are on pace for the strongest November ever, four forecasters say, breaking the industry’s streak of three consecutive monthly declines and keeping open the possibility that 2016 can squeak ahead of last year’s record.
Ford, General Motors and Toyota experienced U.S. sales declines in July while Chrysler and Nissan managed small increases. Ford’s sales fell 3%, including an unexpected 1% decline in pickup truck sales, while GM’s sales fell 4% and Toyota’s dipped 1.4%.
Sales through June were up 1.5% to 8.65 million, eclipsing last year’s record of 8.5 million. That was partly due to a strong June, which saw sales rebound after a disappointing May.
A newly released report from AlixPartners forecasts U.S. light-vehicle sales of 17.5 million in 2017 — down slightly from this year’s 17.8 million forecast. The consulting firm expects U.S. sales to bottom out at 15.2 million vehicles in 2019.
The U.K.’s vote to leave the European Union may cost automakers about 2.8 million light-vehicle sales through 2018, researcher IHS Automotive said in its latest projections for the industry. The U.K. is expected to be hit hardest.
Most major automakers reported lower sales in May compared to the same month a year ago. General Motors’ sales fell 18%, Ford’s were down 6% and Toyota’s sales dropped 10%. Volkswagen’s sales were down 17%. Honda’s sales dropped 5% and Nissan’s fell 1%. Fiat Chrysler and Subaru bucked the trend, with sales up 1% each.
Honda led major automakers with a 14.4% sales increase as both its cars and SUVs sold well, while Nissan’s sales rose 12.8%. Fiat Chrysler was up 6% on record Jeep sales, and Ford rode an April record for SUV sales to a 4% increase. Toyota sales rose 3.8% largely because of the RAV4 small SUV, which broke a monthly record with sales up nearly 32%.
Although indications show demand for new cars is weakening, automakers are poised to reach their highest monthly sales volume in 10 years. New-vehicle sales are expected to rise 8% year-over-year to 1.66 million units in March, according to Kelley Blue Book, resulting in an estimated 17.2 million seasonally adjusted annual rate.
Ford, Honda, Nissan and Fiat Chrysler posted double-digit U.S. sales increases last month as the industry chalked up its strongest volume for a February in 15 years. Total U.S. sales grew 6.8% during the month to 1.3 million vehicles. The sales rate was 17.53 million — the best since 2000.
it sold 10.151 million vehicles in 2015, up from its earlier forecast of of 10.098 million. Volkswagen, which overtook Toyota in sales in the first half of the year, suffered in the second half from an emissions cheating scandal involving diesel cars.
U.S. auto sales are on pace to break the industry’s single-year record by more than 100,000 vehicles, with December sales volume expected to be higher than any month in the past decade, according to a forecast by LMC Automotive.