• 1 hour Gold Hangs At $1,300 Ahead Of Fed Meeting
  • 3 hours Champagne Sales Slow As European Economic Worries Grow Louder
  • 19 hours Putin Signs “Digital Iron Curtain” Into Law
  • 22 hours Russian Metals Magnate Sues U.S. Over Sanctions
  • 1 day Tesla Looks To Jump Into Indian Market
  • 1 day Global Banks Lay Groundwork To Re-Inflate Asset Prices
  • 2 days Homeowners Experiment With Risky New Investment Trend
  • 2 days U.S. Tech Stocks Look Increasingly Vulnerable
  • 2 days De Beers To Expand World’s Most Profitable Diamond Mine
  • 2 days Ford CEO Gets Raise After Massive Layoff Round
  • 3 days Germany’s Flirtation With Recession Could Cripple The Global Economy
  • 3 days Where To Look As Gold Miners Inch Higher
  • 4 days Google Faces Billions In Fines From European Regulators
  • 4 days The Energy Industry Has A Millennial Problem
  • 5 days Russian Banks Scramble For Sanction Loopholes
  • 5 days Gold ETFs Take A Hit After Four-Month Run
  • 6 days European Union Takes Aim At Ten New Tax Havens
  • 6 days Goldman Defends Trillion-Dollar Corporate Buyback Spree
  • 6 days $600 Billion At Risk As Boeing Fallout Continues
  • 6 days Venezuela Has Yet Another Crisis Developing
The Chatroom Cartel Running Global Bond Markets

The Chatroom Cartel Running Global Bond Markets

Eight major banks have been…

Lending: The Good, Bad, And Ugly

Lending: The Good, Bad, And Ugly

Aristotle said, “The most hated…

  1. Home
  2. Markets
  3. Other

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

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, the No. 1 U.S. automaker, reported a 6% decline in April sales to 244,406 vehicles.
  • Ford, the No. 2 U.S. automaker, reported a 7.2% decline in April. Ford car sales dropped 21% and trucks declined 4.2%, while SUV sales rose 1.2%.
  • Toyota reported a drop of 4.4%. Lexus sales slid 11.1%. U.S. car sales at the Japanese automaker were down 10.4%, while truck sales were up 2.1%.
  • Fiat-Chrysler reported sales were off 7%

"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.

 

Back to homepage

Leave a comment

Leave a comment