Auto Sales Puke Again: Year-Over-Year Totals: GM -6%, Ford -7.2%, Toyota -4.4%, Fiat-Chrysler -7.0%

By: Mike Shedlock | Tue, May 2, 2017
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Auto sales are down for the fourth consecutive month. Final numbers are not yet in, but the preliminary year-over-year totals are miserable.

Nearly every company performed worse than expected, and expectations were down across the board.


Boom Over

Reuters reports Automakers’ April U.S. Sales Drop; Wall St. Fears Boom is Over.

"GM said its consumer discounts were equivalent to 11.7 percent of the transaction price. The automaker also said its inventory level rose to 100 days of supply at the end of April versus around 70 days at the end of 2016. Recent levels have worried analysts, and GM has promised inventories will be down by the end of 2017."


Missed Estimates

Bloomberg reports Auto Sales Fall for Fourth Straight Month

USApril Auto Sales


Quote of the Day

The U.S. market is plateauing, Mark LaNeve, Ford’s vice president of U.S. marketing, sales and service, said on a call with analysts and reporters.

"I’m not discouraged by the number," he said. "In this kind of industry, there’s going to be these kinds of months."


Plateauing? Really?

I discussed complacency yesterday in Three Big Red Flags for Auto Sales.

The three red flags according to Automotive News are leasing, incentives, and inventory.  I added a fourth: complacency in the face of falling demand and rising incentives.


Effect on GDP

Auto sales make up about 20% of consumer spending. The big second quarter GDP bounce economists expect is highly unlikely, to say the least.

 


 

Mike Shedlock

Author: Mike Shedlock

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Mike Shedlock

Michael "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Visit http://www.sitkapacific.com/ to learn more about wealth management for investors seeking strong performance with low volatility.

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