Vehicle sales are not looking to good in the United States of America as of late, as they continued to decline in October, marking the third straight month of this slip for the industry. Contributing to this was a decrease in sales for Toyota, General Motors (GM), Fiat Chrysler Automobiles (FCA), Nissan, Honda, and Ford. In fact, from January to September, the car sector was only 0.3% ahead of 2015 sales; which made some speculate as to whether or not 2016 would be a record year for car sales. It doesn’t look to good now. Despite all this bad news, the good news is the selling rate was the highest the industry has seen all year.
Ford recently reported via Auto News that sales had indicated a 12% decrease; its lowest market share to date, since 2008. GM saw a 1.7% decrease in volume, with the company that emphasizes on individual customer sales versus fleet. FCA U.S. decreased to 10%, which saw the second consecutive monthly fall for Jeep, one of the market’s hottest models. Toyota decreased to 8.7%, U.S. Honda decreased to 4.2%, and Nissan decreased to 2.2%.
Some analyst and car manufacturers are still predicting a near-record or record year when it comes to sales, after the sector has experienced six years of growth, however there is little chance that 2016 will supersede the sales levels that 2015 hit.
On the plus side, four auto companies did increase sales in October, and they include: Jaguar Land Rover, Subaru, Hyundai-Kia, and Mitsubishi.
GM’s Chief Economist Mustafa Mohatarem recently noted that key factors that contribute to a healthy auto sector in the U.S.A. include: job security, increasing personal incomes, decreased fuel prices, and low interest rates. He added that the industry is at a good position to continue with strong or near-record sales in the near future.
It’s important to note, there were two less selling days in October 2016 from last year, which could have contributed to October’s decline. Hurricane Matthew may have also been a factor as well, especially when it came to deliveries across the Southeast.
As the demand in retail declines, auto companies are hoping to count on lower interest rates, increased credit availability, and well as some economic growth to help with increased volumes come 2017.
One can only hope …