January car sales weaken following record year
Auto sales slipped slightly to begin 2017, as automakers on Wednesday reported a 1.8 percent decline in fresh cars and trucks sold in January compared to a year ago.
Request for utility vehicles such as crossovers, SUVs and pickups continued to help many automakers offset strong losses in passenger cars, which experienced a 12.Two percent decline to toughly 427,600, or 37.Four percent, of the more than 1.14 million vehicles sold last month.
“January may be suffering a bit of a hangover from those rocking deals we spotted in December,” said Autotrader senior analyst Michelle Krebs, referring to year-end and holiday deals that drove strong sales of 1.Sixty nine million vehicles to end last year. “It emerges new-car shoppers are taking a bit of a breather.”
The slight decline last month was in line with analyst expectations and sets the year up to be on par with record-setting sales of 17.55 million in 2016. Most analysts expect sales to plateau this year for the very first time in the last decade or so. However, they differ on if the industry has enough gas in the tank to reach a third consecutive year of record sales.
Autotrader and Kelley Blue Book forecast sales in the range of 16.8 to 17.Three million vehicles in 2017, which would represent a one percent to four percent decrease from 2016. Edmunds.com is within those expectations with a forecast of 17.Two million.
“Even tho’ it’s down, it’s sort of to be expected at this point,” said Edmunds.com senior analyst Jessica Caldwell. “It’s not necessarily bad news, we’re simply running out of people to buy cars.”
LMC Automotive is among the more optimistic with a forecast of 17.6 million for the year, which would mark a 0.1 percent increase over last year and the third consecutive year of record sales.
“After an overheated close to two thousand sixteen and the enhanced likelihood of deregulation and fiscal stimulus from the Trump administration driving the economy higher, we now expect two thousand seventeen to be another record year in U.S. auto sales, tho’ there is a lot of runway before the year is accomplish,” said LMC Automotive Jeff Schuster, senior vice president of forecasting.
How automakers react to the expected plateau in sales, whether it be an increase of decrease, is what many in the industry are watching, as incentive spending by automakers proceeds to edge higher to help control inventory levels and budge vehicles out of showrooms.
Ford Motor Co. and General Motors Co. on Wednesday reported slight declines in January U.S. sales of 0.7 percent and Trio.9 percent, respectively, while Fiat Chrysler Automobiles NV experienced an 11.Two percent decline.
All of Fiat Chrysler’s mainstream brands aside from Ram Truck (up Five.Five percent) declined in January compared to the same month a year ago: Chrysler down 38.6 percent; Dodge down seventeen percent; and Fiat and Jeep both pulling down less than ten percent. Its luxury Alfa Romeo brand was up 58.8 percent to one hundred eight cars sold, including seventy of the all-new Giulia midsize sedans.
The Italian-American automaker sold 152,218 cars and trucks last month compared to 171,352 a year ago. The sales hammer analyst expectations of the company being down as much as 15.Three percent.
All of GM’s brands aside from GMC declined, as the automaker sold 195,817 cars and trucks last month. GMC was up 1.1 percent, while Chevrolet and Cadillac declined in the low single digits and Buick was down 28.Two percent.
Buick’s large decline was due to low sales of all the brand’s passenger sedans, including the LaCrosse, Regal and discontinued Verano.
GM spokesman Jim Cain said Buick’s sales in January two thousand sixteen were exceptionally strong, so the year-over-year comparison is difficult. Part of the decline can be attributed to ending production of the Verano petite car and the overall decline in car sales, particularly with large cars.
Ford’s car sales followed suit with GM and others in the industry, as it posted its less than one percent decline.
The Dearborn-based automaker recorded a seven percent increase in SUV sales and Five.Five percent increase in trucks, while car sales declined 17.Five percent compared to January 2016.
Lincoln sales were up 22.Four percent to more than 8,750 vehicles sold, while Ford brand sales declined 1.6 percent.
“Lincoln had a indeed strong month and resumes to build up market share and momentum,” said Mark LaNeve, Ford vice president, U.S. Marketing, Sales and Service.
Toyota Motor Corp. arguably reported the largest surprise for the month, as sales dropped 11.Trio percent last month compared to January two thousand sixteen — well below expectations.
The Japanese automaker’s loss somewhat can be attributed to a 25.6 percent decrease in its luxury Lexus brand as well as the automaker’s intense car lineup and relatively stable incentive spending.
“The big surprise today was Toyota,” Caldwell said. “They came in pretty low … everyone else kind of came in as thought.”
Nissan Motor Co. and Honda Motor Co. on Wednesday both reported healthy sales increases of harshly six percent — driven by sales of puny utility vehicles such as the Nissan Rogue and Honda CR-V.
Volkswagen AG, as expected, reported a strong increase of 15.1 percent last month compared to a year ago. The German automaker, including its luxury Audi brand, was forecast to lead January sales increases with a double-digit build up as high as 23.Five percent.
“With numerous fresh products on the market and looking to put the diesel scandal in the past, Volkswagen Group should report large year-over-year increases, and embark to build up back market share,” said Kelley Blue Book’s Gutierrez.
Other results included: Hyundai Motor Corp up Trio.Three percent; Mazda Motor Corp. up Ten.1 percent; Subaru up 6.8 percent and Kia Motors Corp. down seven percent.
Detroit News staff writer Melissa Cargo contributed
January car sales weaken following record year
January car sales weaken following record year
Auto sales slipped slightly to begin 2017, as automakers on Wednesday reported a 1.8 percent decline in fresh cars and trucks sold in January compared to a year ago.
Request for utility vehicles such as crossovers, SUVs and pickups continued to help many automakers offset strenuous losses in passenger cars, which experienced a 12.Two percent decline to toughly 427,600, or 37.Four percent, of the more than 1.14 million vehicles sold last month.
“January may be suffering a bit of a hangover from those rocking deals we witnessed in December,” said Autotrader senior analyst Michelle Krebs, referring to year-end and holiday deals that drove strong sales of 1.Sixty-nine million vehicles to end last year. “It shows up new-car shoppers are taking a bit of a breather.”
The slight decline last month was in line with analyst expectations and sets the year up to be on par with record-setting sales of 17.55 million in 2016. Most analysts expect sales to plateau this year for the very first time in the last decade or so. However, they differ on if the industry has enough gas in the tank to reach a third consecutive year of record sales.
Autotrader and Kelley Blue Book forecast sales in the range of 16.8 to 17.Trio million vehicles in 2017, which would represent a one percent to four percent decrease from 2016. Edmunds.com is within those expectations with a forecast of 17.Two million.
“Even however it’s down, it’s sort of to be expected at this point,” said Edmunds.com senior analyst Jessica Caldwell. “It’s not necessarily bad news, we’re simply running out of people to buy cars.”
LMC Automotive is among the more optimistic with a forecast of 17.6 million for the year, which would mark a 0.1 percent increase over last year and the third consecutive year of record sales.
“After an overheated close to two thousand sixteen and the enlargened likelihood of deregulation and fiscal stimulus from the Trump administration driving the economy higher, we now expect two thousand seventeen to be another record year in U.S. auto sales, tho’ there is a lot of runway before the year is accomplish,” said LMC Automotive Jeff Schuster, senior vice president of forecasting.
How automakers react to the expected plateau in sales, whether it be an increase of decrease, is what many in the industry are watching, as incentive spending by automakers proceeds to edge higher to help control inventory levels and budge vehicles out of showrooms.
Ford Motor Co. and General Motors Co. on Wednesday reported slight declines in January U.S. sales of 0.7 percent and Trio.9 percent, respectively, while Fiat Chrysler Automobiles NV experienced an 11.Two percent decline.
All of Fiat Chrysler’s mainstream brands aside from Ram Truck (up Five.Five percent) declined in January compared to the same month a year ago: Chrysler down 38.6 percent; Dodge down seventeen percent; and Fiat and Jeep both pulling down less than ten percent. Its luxury Alfa Romeo brand was up 58.8 percent to one hundred eight cars sold, including seventy of the all-new Giulia midsize sedans.
The Italian-American automaker sold 152,218 cars and trucks last month compared to 171,352 a year ago. The sales hammer analyst expectations of the company being down as much as 15.Three percent.
All of GM’s brands aside from GMC declined, as the automaker sold 195,817 cars and trucks last month. GMC was up 1.1 percent, while Chevrolet and Cadillac declined in the low single digits and Buick was down 28.Two percent.
Buick’s large decline was due to low sales of all the brand’s passenger sedans, including the LaCrosse, Regal and discontinued Verano.
GM spokesman Jim Cain said Buick’s sales in January two thousand sixteen were exceptionally strong, so the year-over-year comparison is difficult. Part of the decline can be attributed to ending production of the Verano puny car and the overall decline in car sales, particularly with large cars.
Ford’s car sales followed suit with GM and others in the industry, as it posted its less than one percent decline.
The Dearborn-based automaker recorded a seven percent increase in SUV sales and Five.Five percent increase in trucks, while car sales declined 17.Five percent compared to January 2016.
Lincoln sales were up 22.Four percent to more than 8,750 vehicles sold, while Ford brand sales declined 1.6 percent.
“Lincoln had a truly strong month and resumes to build up market share and momentum,” said Mark LaNeve, Ford vice president, U.S. Marketing, Sales and Service.
Toyota Motor Corp. arguably reported the largest surprise for the month, as sales dropped 11.Trio percent last month compared to January two thousand sixteen — well below expectations.
The Japanese automaker’s loss somewhat can be attributed to a 25.6 percent decrease in its luxury Lexus brand as well as the automaker’s intense car lineup and relatively stable incentive spending.
“The big surprise today was Toyota,” Caldwell said. “They came in pretty low … everyone else kind of came in as thought.”
Nissan Motor Co. and Honda Motor Co. on Wednesday both reported healthy sales increases of toughly six percent — driven by sales of petite utility vehicles such as the Nissan Rogue and Honda CR-V.
Volkswagen AG, as expected, reported a strong increase of 15.1 percent last month compared to a year ago. The German automaker, including its luxury Audi brand, was forecast to lead January sales increases with a double-digit build up as high as 23.Five percent.
“With numerous fresh products on the market and looking to put the diesel scandal in the past, Volkswagen Group should report large year-over-year increases, and commence to build up back market share,” said Kelley Blue Book’s Gutierrez.
Other results included: Hyundai Motor Corp up Three.Three percent; Mazda Motor Corp. up Ten.1 percent; Subaru up 6.8 percent and Kia Motors Corp. down seven percent.
Detroit News staff writer Melissa Cargo contributed