DETROIT (AP) – U.S. sales of new cars and trucks were expected to drop in August, ending summer on a low note for the auto industry.
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Ford Motor’s US vehicle sales fell by 8.4% and GM’s sales declined by 5.2%, compared to a year earlier, as the auto industry was expected to post a slower month overall.
Lincoln sales rose 7 percent in the U.S.in August versus a year ago with 9,243 vehicles sold, while Ford Motor Company vans reached best-ever August sales with 20,355 vehicles sold.
Ford Motor Co. and General Motors Co. posted bigger than expected declines as they sold fewer discounted models to fleet buyers while pickups and sport utility vehicles – important due to their high profit margins – experienced a rare decline. Automakers will begin reporting monthly figures Thursday morning. The overall industry average is 75 days. “Our retail strength is reflected in our record average transaction prices in August, which were up more than $1,600 from July and almost $5,800 above the industry average while our incentive spending was below the industry average and well below our domestic competitors”. Vehicle sales slipped 1.4% year over year in August, and are down 3.5% for the year to date. GM also projects a 17.2 million pace for August, bringing the year-to-date selling rate to 17.3 million. Total sales through August are now expected to be flat compared to a year ago. However, GM’s retail sales fell about 5 per cent, in line with its wider total sales decline.
FCA was driven by its popular Jeep brand, which posted a 12 percent sales gain.
Experts are still split on whether or not the industry will set a sales record for a second-consecutive year. For the first seven months of 2016, F-Series pickup sales are up 6.7% year over year. For Fiat Chrysler, the analysts expected sales increases of 0.6% and 0.2%.
Retail sales totaled 168,543 vehicles for the month – an 8 percent decrease.
Despite encountering a plateau, profitability remains strong.
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The sales number generate more interest among investors as others like General Motors Company (NYSE: GM), Fiat Chrysler Automobiles NV (NYSE: FCAU), Toyota Motor Corp (ADR) (NYSE: TM), Honda Motor Co Ltd (ADR) (NYSE: HMC) and others will be disclosing their sales number for August throughout the day Thursday.
