Auto Inventories Highest Since July 2009: Concerns Mount, Ford Vehicle Sales Decline 7.2%, GM Up 1.6%

IMG Auteur
Published : April 03rd, 2017
345 words - Reading time : 0 - 1 minutes
( 0 vote, 0/5 )
Print article
  Article Comments Comment this article Rating All Articles  
0
Send
0
comment
Our Newsletter...
Category : Opinions and Analysis

More auto numbers will come in later in the day, but the initial reports show Mixed Sales Results in March.

The top two U.S. auto makers reported mixed results for March amid growing concerns about the industry’s inventory levels and reliance on discounts.

General Motors Co.reported a 1.6% sales increase in March to 256,224 units compared with the same month a year ago. The Detroit, Mich., auto maker said its retail sales were up 5% in March to 203,113 units.

Ford Motor Co. reported a 7.2% sales decline in March compared with the same month a year ago. The Dearborn, Mich., auto maker pulled back on fleet sales and experienced a substantial decline in passenger-car sales.

Top Japanese auto makers, meanwhile, reported mixed U.S. sales results in March, with Honda Motor Co. HMC -0.73% posting a 0.7% decline and Nissan Motor Co.reporting a 3.2% increase.

Ford said fleet sales dropped 17% in March, due in large part to the timing of customer orders. Retail sales for the No. 2 U.S. auto maker fell 1.5%.

Industry watchers are keeping a close eye on inventory levels, which are tracking near historic highs and forcing auto makers to ladle out generous discounts. A glut of used cars flooding the market is also pressuring new-car prices.

The average incentive is expected to reach 10.4% of the sticker price, exceeding the 10% level in March for the first time since 2009 when the country was navigating the financial collapse, the research firm said.

Also troubling to analysts is the number of days a vehicle sits on a dealer lot before being sold. That number is expected to reach 70 days in March, the highest level for any month since July 2009, according to J.D. Power.

I expect this report will take a couple of ticks off GDP estimates, but other reports are out today that also factor into GDPNow and Nowcast GDP estimates.

Auto sales account for approximately 20% of retail sales. A sustained slowdown, which I expect, will be a drag on GDP for some time.

Mike “Mish” Shedlock

Source : mishtalk.com
Data and Statistics for these countries : Georgia | All
Gold and Silver Prices for these countries : Georgia | All
<< Previous article
Rate : Average note :0 (0 vote)
>> Next article
IMG Auteur
Mish 13 abonnés
Mike Shedlock / Mish is a registered investment advisor representative for SitkaPacific Capital Management. He writes a global economics blog which has commentary 5-7 times a week. He also writes for the Daily Reckoning, Whiskey & Gunpowder, and has over 80 magazine and book cover credits. Visit http://www.sitkapacific.com
WebsiteSubscribe to his services
Comments closed
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
Latest Comments
The Fed Is Confused about What Drives Inflation
18 Octneville
Hi Frank, Thanks for your article.......The fact of the matter is that LIES LIKE EVERYTHING ELSE DRIVES INFLATION , which as it so happens is 'THE'...
What kind of person runs for public office ?
17 OctThemis1
I liked the use of the self-actualization chart within the context of politicians and their motives. It probably applies to many in Hollywood as w...
The Silliness of the Bretton Woods Years
16 OctThe Recusant
KUDOS! The book is anti-gold slanted throughout and subtly mocks those that value gold as seen in that silly Las Vegas Golden Rooster tale. As I pr...
The Future (Not)
14 OctS W.-1
I have it on good authority that the Aliens living in Antarctica have discovered a way of turning Ice into Oil. All we have to do to secure ou...
Betrayal!
09 OctThemis1
I agree 100% with all the points you made. You have summarized my own anger and the reasons for it. My only consolation is that I believe the eli...
A silver price-suppression theory gets debunked
07 OctDoom-1
I think he linked the wrong article, because there's minimal facts and logic there relevant to price suppression. It's a shame, because I really wo...
Light It Up
07 OctThemis
I keep wondering whether the US is fermenting a war with North Korea so as to indirectly draw China in and delay implementation of the yuan-for-oil...
One Nation Under Gold (2017), by James Ledbetter
05 OctThe Recusant1
Sadly, I too hoped for a more even-handed assessment of gold in our economic history. The book IS biased and by the time I got to the 20th century ...
Most commented articlesFavoritesMore...
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS