Sales in October slip Five.9%, but 17.98 million SAAR strongest of the year

Numbers in this table are calculated by Automotive News based on actual monthly sales reported by the manufacturers and may differ from numbers reported elsewhere.

Source: Automotive News Data Center

**Ferrari split off from Fiat Chrysler Automobiles on Jan. 1, 2016.

***Includes estimates for Aston Martin, Ferrari and Lotus

Behind a remarkable record, with the slimmest of margins

U.S. auto sales, dragged down by declines at Ford, General Motors, Fiat Chrysler, Honda, Nissan and Toyota, fell in October for the third consecutive month. However, the month`s selling rate was the strongest of two thousand sixteen so far.

Industry light-vehicle deliveries for the month fell Five.9 percent to 1,370,721 cars and light trucks. Sales in the very first ten months of the year fell behind 2015`s rhythm, slipping 0.Three percent to 14,472,007 vehicles. Through September, the industry was just 0.Trio percent ahead of its two thousand fifteen sales rhythm.

Ford, which reported sales Wednesday after a one-day delay caused by a fire at its headquarters, posted a twelve percent decline. Its market share was the lowest since 2008.

But the seasonally adjusted annualized sales rate for October came in at 17.98 million vehicles. That is down from a SAAR of Legitimate.Two million in October 2015, the highest tempo of sales during the current cycle. The SAAR last month, however, exceeded forecasts.

General Motors’ volume fell 1.7 percent as it continued to emphasize sales to individual customers over fleet deliveries. Nissan Motor Co. was down Two.Two percent while American Honda Motor Co. dropped Four.Two percent and Toyota Motor Corp. lost 8.7 percent. FCA US’s ten percent fall included a 2nd straight monthly dip at Jeep, one of the industry’s best brands.

«If anyone needed confirmation that the U.S. auto market is slowing, they got it with the October sales results,” said Jack R. Nerad, executive market analyst for Kelley Blue Book. “Sales have become tighter to come by and more expensive (higher incentives) over the past few months.”

To reach the 17.Five million sales mark in 2016, and eclipse 2015’s record volume, the light-vehicle SAAR will need to average Legal.Three million for the last two months of the year, Well Fargo analyst Richard Kwas said.

While some automakers and analysts hold out hope for a record or near-record sales year, after six years of growth, Nerad said there is very little hope that two thousand sixteen will strike 2015`s sales level, “especially when there is the likelihood of an interest-rate hike prior to the end of the year.»

Only four automakers managed to advance last month: Subaru, Mitsubishi, Hyundai-Kia and Jaguar Land Rover. JLR’s build up came despite a twenty three percent setback at Land Rover.

«Key fundamentals like job security, rising private incomes, low fuel prices and low interest rates proceed to provide the environment for a very healthy U.S. auto industry,» GM’s chief economist Mustafa Mohatarem said in a statement. «The U.S. auto industry is well placed for sales to proceed at or near record levels for the foreseeable future.»

Ford, which had warned that request would soften later in the year, reported the largest decline of the volume automakers. Overall sales fell twelve percent. The Ford brand was down thirteen percent. But Lincoln was up 6.9 percent, driven by the MKZ sedan, MKX crossover and incremental volume from the fresh Continental sedan.

GM’s deliveries dropped 0.8 percent at Chevrolet, 6.Two percent at GMC and 9.Four percent at Cadillac, while volume rose 7.Four percent at Buick.

GM said its retail sales rose Two.Five percent last month while daily rental shipments dropped by approximately 8,000 vehicles, or about nineteen percent, compared to last year. October marked the seventh-straight monthly decline for GM.

Sales at Nissan`s namesake division were down Two.Five percent, while Infiniti was up 0.6 percent. Nissan-brand trucks surged thirteen percent, aided by low fuel prices, while cars were off fifteen percent.

At FCA, only Ram gained ground, with a twelve percent increase. Among FCA`s other brands, only Jeep — down 6.6 percent — managed to limit its decline to single digits.

Acura was the big haul at American Honda, down twenty percent. The Honda brand, despite a two percent October drop, remains Four.Three percent ahead of its 10-month rhythm of 2015.

The Volkswagen brand, thirteen months into its diesel-emissions crisis, fell for a twelve th- straight month. The latest plunge was one of the thickest in that open up: nineteen percent. Mazda was also among the double-digit decliners, off eleven percent.

Subaru, benefiting from strong crossover request, spotted sales grow Four.1 percent to 53,760 vehicles last month. October marked the 59th consecutive month of yearly month-over-month increases, the company said.

Sales of the Crosstrek, Forester and Outback crossovers set a fresh record for October, the company said.

«With four consecutive months of sales exceeding 50,000 vehicles, we have the momentum to achieve our eighth consecutive all-time sales record in 2016,» said Tom Doll, president of Subaru of America.

Trucks continued to set the tempo for the industry last month while cars continued to fight. American Honda said the Honda and Acura brands each set October sales records for light trucks. Nissan said it set an October record for crossover, truck and SUV volume.

In some cases, notably large pickups, fatter deals drove light-truck volume higher last month.

«Light trucks remained the greatest segment for the industry in October,» said Bill Fay, general manager of the Toyota Division.

But in the enormous midsize sedan segment, the declines were prominent: Toyota’s Camry, off fifteen percent; the Honda Accord, down fifteen percent; Ford Fusion, ripping off twenty one percent; and Nissan Altima volume dipped Three.Trio percent. At GM, sales of the Buick Regal fell twenty percent and the Chevrolet Malibu slipped thirty five percent.

Overall, U.S. light-truck sales hopped 1.1 percent in October while car request slumped sixteen percent.

There were two fewer selling days last month compared with October 2015. And Hurricane Matthew likely put a puny dent in deliveries across the Southeast, some analyst said.

Analysts and automakers say sales to individual customers have peaked after six consecutive years of growth and that higher industry volume will only be supported by extra fleet deliveries.

Even with fatter discounts, retail sales, a key measure of consumer request, are projected to total 1,099,200 vehicles in October, the sixth time in the past eight months that volume has fallen on a year-over-year basis, J.D. Power says.

As retail request slips, automakers are counting on low interest rates, widespread credit availability and modest economic growth to support volumes well into 2017.

Well Fargo’s Kwas, citing «channel» checks, said the last week of October, including the weekend, was softer than expected.

«We anticipate retail to be powerless, but fleet to be stronger year over year,» Kwas said in a report Monday.

UBS analyst Colin Langan, citing a survey of dealers, said in a report late last week that uncertainty surrounding the U.S. presidential election is also casting a cloud over consumer request for fresh cars.

To help gauge post-election sales, UBS found that dealers, on average, believe that Democrat Hillary Clinton as president would result «in a moderate negative» in auto request, while Republican Donald Trump would be «a slight positive.»

While incentive spending in October fell slightly from September, it rose at least twelve percent compared with October 2015, TrueCar and J.D. Power say.

Incentive spending in October was tracking at $Three,726 per vehicle, below the record $Three,921 set in September, but well above the $Trio,332 in October 2015, J.D. Power says.

TrueCar estimates incentives averaged $Three,587 last month, up sixteen percent over October 2015, with the Detroit three and Nissan the thickest spenders among the largest automakers.

A measure closely monitored by analysts, incentives as a percentage of average new-vehicle transaction prices, have been tracking at twelve percent the last four months — the highest level since the Excellent Recession.

«Pricing softness has spread beyond the sedan segments, and into some of the SUV [and crossover] segments — which had generally been strong until recently,» Barclays analyst Brian Johnson noted in a report on Monday.

Diana T. Kurylko contributed to this report.

Sales in October slip five

Sales in October slip Five.9%, but 17.98 million SAAR strongest of the year

Numbers in this table are calculated by Automotive News based on actual monthly sales reported by the manufacturers and may differ from numbers reported elsewhere.

Source: Automotive News Data Center

**Ferrari split off from Fiat Chrysler Automobiles on Jan. 1, 2016.

***Includes estimates for Aston Martin, Ferrari and Lotus

Behind a remarkable record, with the slimmest of margins

Industry light-vehicle deliveries for the month fell Five.9 percent to 1,370,721 cars and light trucks. Sales in the very first ten months of the year fell behind 2015`s rhythm, slipping 0.Trio percent to 14,472,007 vehicles. Through September, the industry was just 0.Trio percent ahead of its two thousand fifteen sales tempo.

Ford, which reported sales Wednesday after a one-day delay caused by a fire at its headquarters, posted a twelve percent decline. Its market share was the lowest since 2008.

But the seasonally adjusted annualized sales rate for October came in at 17.98 million vehicles. That is down from a SAAR of Legal.Two million in October 2015, the highest rhythm of sales during the current cycle. The SAAR last month, however, exceeded forecasts.

«If anyone needed confirmation that the U.S. auto market is slowing, they got it with the October sales results,” said Jack R. Nerad, executive market analyst for Kelley Blue Book. “Sales have become stiffer to come by and more expensive (higher incentives) over the past few months.”

To reach the 17.Five million sales mark in 2016, and eclipse 2015’s record volume, the light-vehicle SAAR will need to average Eighteen.Trio million for the last two months of the year, Well Fargo analyst Richard Kwas said.

While some automakers and analysts hold out hope for a record or near-record sales year, after six years of growth, Nerad said there is very little hope that two thousand sixteen will hammer 2015`s sales level, “especially when there is the likelihood of an interest-rate hike prior to the end of the year.»

Only four automakers managed to advance last month: Subaru, Mitsubishi, Hyundai-Kia and Jaguar Land Rover. JLR’s build up came despite a twenty three percent setback at Land Rover.

«Key fundamentals like job security, rising individual incomes, low fuel prices and low interest rates proceed to provide the environment for a very healthy U.S. auto industry,» GM’s chief economist Mustafa Mohatarem said in a statement. «The U.S. auto industry is well placed for sales to proceed at or near record levels for the foreseeable future.»

GM’s deliveries dropped 0.8 percent at Chevrolet, 6.Two percent at GMC and 9.Four percent at Cadillac, while volume rose 7.Four percent at Buick.

At FCA, only Ram gained ground, with a twelve percent increase. Among FCA`s other brands, only Jeep — down 6.6 percent — managed to limit its decline to single digits.

Acura was the big haul at American Honda, down twenty percent. The Honda brand, despite a two percent October drop, remains Four.Three percent ahead of its 10-month rhythm of 2015.

The Volkswagen brand, thirteen months into its diesel-emissions crisis, fell for a twelve th- straight month. The latest plunge was one of the largest in that spread: nineteen percent. Mazda was also among the double-digit decliners, off eleven percent.

Subaru, benefiting from strong crossover request, witnessed sales grow Four.1 percent to 53,760 vehicles last month. October marked the 59th consecutive month of yearly month-over-month increases, the company said.

Sales of the Crosstrek, Forester and Outback crossovers set a fresh record for October, the company said.

In some cases, notably large pickups, fatter deals drove light-truck volume higher last month.

«Light trucks remained the best segment for the industry in October,» said Bill Fay, general manager of the Toyota Division.

But in the phat midsize sedan segment, the declines were prominent: Toyota’s Camry, off fifteen percent; the Honda Accord, down fifteen percent; Ford Fusion, ripping off twenty one percent; and Nissan Altima volume dipped Trio.Three percent. At GM, sales of the Buick Regal fell twenty percent and the Chevrolet Malibu slipped thirty five percent.

Overall, U.S. light-truck sales leaped 1.1 percent in October while car request slumped sixteen percent.

There were two fewer selling days last month compared with October 2015. And Hurricane Matthew likely put a petite dent in deliveries across the Southeast, some analyst said.

Analysts and automakers say sales to individual customers have peaked after six consecutive years of growth and that higher industry volume will only be supported by extra fleet deliveries.

As retail request slips, automakers are counting on low interest rates, widespread credit availability and modest economic growth to support volumes well into 2017.

Well Fargo’s Kwas, citing «channel» checks, said the last week of October, including the weekend, was softer than expected.

«We anticipate retail to be feeble, but fleet to be stronger year over year,» Kwas said in a report Monday.

While incentive spending in October fell slightly from September, it rose at least twelve percent compared with October 2015, TrueCar and J.D. Power say.

Incentive spending in October was tracking at $Three,726 per vehicle, below the record $Trio,921 set in September, but well above the $Three,332 in October 2015, J.D. Power says.

TrueCar estimates incentives averaged $Trio,587 last month, up sixteen percent over October 2015, with the Detroit three and Nissan the thickest spenders among the largest automakers.

Diana T. Kurylko contributed to this report.

Sales in October slip five

Sales in October slip Five.9%, but 17.98 million SAAR strongest of the year

Numbers in this table are calculated by Automotive News based on actual monthly sales reported by the manufacturers and may differ from numbers reported elsewhere.

Source: Automotive News Data Center

**Ferrari split off from Fiat Chrysler Automobiles on Jan. 1, 2016.

***Includes estimates for Aston Martin, Ferrari and Lotus

Behind a remarkable record, with the slimmest of margins

Industry light-vehicle deliveries for the month fell Five.9 percent to 1,370,721 cars and light trucks. Sales in the very first ten months of the year fell behind 2015`s tempo, slipping 0.Three percent to 14,472,007 vehicles. Through September, the industry was just 0.Three percent ahead of its two thousand fifteen sales rhythm.

Ford, which reported sales Wednesday after a one-day delay caused by a fire at its headquarters, posted a twelve percent decline. Its market share was the lowest since 2008.

But the seasonally adjusted annualized sales rate for October came in at 17.98 million vehicles. That is down from a SAAR of Legal.Two million in October 2015, the highest tempo of sales during the current cycle. The SAAR last month, however, exceeded forecasts.

«If anyone needed confirmation that the U.S. auto market is slowing, they got it with the October sales results,” said Jack R. Nerad, executive market analyst for Kelley Blue Book. “Sales have become stiffer to come by and more expensive (higher incentives) over the past few months.”

To reach the 17.Five million sales mark in 2016, and eclipse 2015’s record volume, the light-vehicle SAAR will need to average Legal.Trio million for the last two months of the year, Well Fargo analyst Richard Kwas said.

While some automakers and analysts hold out hope for a record or near-record sales year, after six years of growth, Nerad said there is very little hope that two thousand sixteen will hammer 2015`s sales level, “especially when there is the likelihood of an interest-rate hike prior to the end of the year.»

Only four automakers managed to advance last month: Subaru, Mitsubishi, Hyundai-Kia and Jaguar Land Rover. JLR’s build up came despite a twenty three percent setback at Land Rover.

GM’s deliveries dropped 0.8 percent at Chevrolet, 6.Two percent at GMC and 9.Four percent at Cadillac, while volume rose 7.Four percent at Buick.

At FCA, only Ram gained ground, with a twelve percent increase. Among FCA`s other brands, only Jeep — down 6.6 percent — managed to limit its decline to single digits.

Acura was the big haul at American Honda, down twenty percent. The Honda brand, despite a two percent October drop, remains Four.Three percent ahead of its 10-month tempo of 2015.

Sales of the Crosstrek, Forester and Outback crossovers set a fresh record for October, the company said.

In some cases, notably large pickups, fatter deals drove light-truck volume higher last month.

«Light trucks remained the best segment for the industry in October,» said Bill Fay, general manager of the Toyota Division.

But in the meaty midsize sedan segment, the declines were prominent: Toyota’s Camry, off fifteen percent; the Honda Accord, down fifteen percent; Ford Fusion, pulling down twenty one percent; and Nissan Altima volume dipped Three.Trio percent. At GM, sales of the Buick Regal fell twenty percent and the Chevrolet Malibu slipped thirty five percent.