U.S. auto sales dropped down for the third month in the row, showed reports of automakers at the end of October. All the producers are facing with the slowing of sales including the largest, such as: General Motors, Fiat Chrysler, Honda, Nissan and Toyota. They al fell in October after the same situation in September and August.
Looking at the figures, biggest cut on sales have FCA US with 10 % fall including one of the industry’s hottest brand, Jeep. Toyota Motor Corp. lost 8.7 percent Toyota Motor Corp. lost 8.7 %, American Honda Motor Co. dropped 4.2 %, Nissan Motor Co. was down 2.2 %. General Motors’ volume fell 1.7 % as it continued to emphasize sales to individual customers over fleet deliveries.
Harder and more expensive sales in past few months
Jack R. Nerad, executive market analyst for Kelley Blue Book said that “if anyone needed confirmation that the U.S. auto market is slowing, they got it with the October sales results. Sales have become harder to come by and more expensive (higher incentives) over the past few months.”
Even though some of the automakers claim record sales after six years of growth, Nerad is resolved in his predictions. “There is very little hope that 2016 will beat 2015’s sales level, especially when there is the likelihood of an interest-rate hike prior to the end of the year,” he said.
October figures will be available at the end of this week. The seasonally adjusted annualized sales rate is expected to remain strong at 17.7 million, based on a survey of 11 analysts by Bloomberg. While that is down from a SAAR of 18.2 million in October 2015, the highest pace of sales during the current cycle, it would be among the strongest SAARs of the year.
GM estimated the October SAAR will come in at 18 million. “Key fundamentals like job security, rising personal incomes, low fuel prices and low interest rates continue to provide the environment for a very healthy U.S. auto industry. The U.S. auto industry is well positioned for sales to continue at or near record levels for the foreseeable future.” GM issued statement from its economic department.
Opposite of car sales cars Trucks are still setting up the tempo of the industry. Honda and Acura brands each set October sales records for light trucks. Nissan set an October record for crossover, truck and SUV volume.
However In the huge midsize sedan segment the fall is recorded with: Toyota’s Camry (15%) Honda Accord (15%), and Nissan Altima (3.3%). Sales of the GM’s Buick Regal fell 20 % While the Chevrolet Malibu fell down for huge 35 percent.
Overall, without Ford’s results (due to the fire in the headquarters), car demand slipped 15 percent last month while light truck deliveries rose 2.6 percent.