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
Who Moved My Xanax?
17 JanThemis-1
I actually agree with a lot of what Trump says while deploring the tone and his lack of judgment in making such remarks publically while in office.
Socialist Dystopia: Starving Venezuelans Loot As Runaway Inflation ...
17 JanThemis
There is a 19th century English word that is particularly appropriate in this instance - "kakistocracy", i.e. government by the worst or least qual...
Who Moved My Xanax?
15 JanMr. Gnawbone
It is an exploitation of the ignorant and uninformed population, but that is what happens when they pay attention to meaningless information and ...
Racism-O-Rama
15 JanMr. Gnawbone1
It sounds racist, so it has to be. Overton Bubble at work, the faculty were programed to respond as if to a Pavlovian Bell. There is no way to ch...
Racism-O-Rama
16 Jandennyc1
Ah, yes, black welfare recipients receiving our hard earned and easily spent tax dollars and providing us nothing save their lives for our investme...
Racism-O-Rama
15 JanDoom2
It's not just the English that is considered RACIST, it's also mathematics, and a wide range of other things: http://professorconfess.blogspot...
2018: The Wrong Lesson on Gold Investing
14 JanThe Recusant
As you say, it's only what the central banks do that matters. Gold and its little brother silver are the only true measures of fiat currencies and ...
One-year score card for Trump
13 JanS W.
Everything else aside, Donald Trump has a very small mouth, combined with the weirdest lip action and pouting of any person I have ever seen.
Most commented articlesFavoritesMore...
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS
Take advantage of rising gold stocks
  • Subscribe to our weekly mining market briefing.
  • Receive our research reports on junior mining companies
    with the strongest potential
  • Free service, your email is safe
  • Limited offer, register now !
Go to website.