Auto sales in the United States fell 4 percent in the third quarter.
Auto sales in the United States fell 4 percent in the third quarter.
Vehicle sales are slowing despite a career in large SUVs.
The major automakers said on Tuesday that US sales were up. UU They fell 7 percent in September and 4 percent in the quarter from June to September, compared to the same periods last year.
The weakest numbers in September and the third quarter eliminated a 1.8 percent gain during the first half of the year and left car sales at the same pace as in 2017. Some analysts warned that first-half profits were boosted for incentives and low margin sales To fleet buyers as car rental companies.
Industry officials blamed the recent weakness in part on hurricanes - both in 2017 and 2018.
Ford sales analyst Erich Merkle suggested that the September numbers were affected by Hurricane Florence, which flooded parts of the Carolinas. That made it harder to compete with September 2017, when sales were driven by owners who replaced cars after Hurricane Harvey hit Houston, he said.
Edmunds analyst Jeremy Acevedo also noted that while prices and interest rates for car buyers are increasing, favorable credit arrangements are increasingly difficult to find.
"The trickle-down effect of high interest rates really started to affect car buyers in September," he said.
General Motors Co. chief economist Elaine Buckberg predicted that 2018 will be the fourth consecutive year with industry sales in excess of 17 million vehicles. He said that a new trade agreement between the US. UU., Mexico and Canada will alleviate the uncertainty for the automotive industry, and consumer confidence remains high due to the strong labor market.
Confidence could explain why more consumers are gravitating towards SUVs and trucks despite having to spend more on gasoline to keep them running.
Ford said Lincoln Navigators sales in September, a small fraction of the company's sales, rose 77 percent, and stayed in dealer lots for an average of only 12 days. At General Motors, a 12 percent increase in the combined sales of the large Chevrolet Tahoe and Suburban SUVs and GMC Yukon helped raise the company's average transaction price by $ 700.
Meanwhile, Ford reported that auto sales fell 25.7 percent in September, compared to a 9.9 percent drop for pickups and a 2.7 percent drop for SUVs.
Jack Hollis, general manager of the Toyota division in North America, said in a call with reporters that the ratio in the truck and SUV sales industry to car sales is approaching 70-30, adding that "it is not so sure that it stops completely. " . "
While industry officials expressed optimism in the economy, automakers have other concerns.
New US tariffs on imported steel and aluminum could increase their costs. A new trade agreement could also make vehicles more expensive by increasing the amount of content required in North America to avoid tariffs, and require that at least 40 percent of the contents of a car be built where workers earn $ 16 per hour.
The following shows how the major automobile manufacturers made gains in EE sales. UU In the third quarter, according to Edmunds, which provides content, including tips and automotive reviews, for distribution by The Associated Press:
- General Motors, down 11 percent to 694,638.
- Toyota, down 6 percent to 634,923.
- Ford, down 4 percent to 606,939.
- Fiat Chrysler, with an increase of 10 percent to 564,507.
- Honda, down 5 percent to 419,173.
- Nissan, down 9 percent to 343,987.
- Subaru, up 4 percent to 180,558.
- Hyundai, up 1 percent to 166,653.
- Kia, down 2 percent to 158,479.
- Volkswagen rose 2 percent to 93,330.
- BMW, down 1 percent to 83,236.
- Mercedes-Benz, down 14 percent to 77,965.
- Mazda, down 10 percent to 71,198.
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