On Tuesday, the auto industry in the USA was heading to reporting another strong month of sales for October despite the concerns about a consumer spending slowdown and wages that are stagnant.
Advertisement
A poll of economists showed that the expectations of the adjusted annualized sales rate for October was 17.7 million.
General Motors said that sales rose nearly 16 percent in its most lucrative market, while Ford reported a 13 percent gain.
According to the Autodata report, total industry unit deliveries increased 13.6 percent compared to last October.
Fiat Chrysler Automobiles said its sales hit 195,545 vehicles last month, a 15 percent gain and the company’s best October since 2001.
Nissan Motor Co. finished the month 12.5% higher than past year at 116,047 light vehicles. They are expecting sales of roughly 1.43 million vehicles for 2015.
It was Fiat Chrysler’s strongest October since 2001, when most automakers offered zero percent financing in the aftermath of the September 11, 2001 terrorist attacks.
“In this year of booming auto sales, no auto maker should be relieved to see flat year-over-year performance, but this may be the best that Volkswagen can hope for this month”, said Edmunds.com analyst Jessica Caldwell. And the pace likely won’t slow as holiday promotions begin in November.
GM said US auto sales are on pace to end 2015 topping the 1999 record of 17.8 million vehicles sold.
This is the first time since 2000 when the sales rate has been at more than 18 million vehicles over back-to-back months.
Auto shoppers continued to drive away in larger, pricier vehicles amid low interest rates, cheap fuel and a stronger economy. Schuster said buyers are using the extra cash to buy bigger vehicles loaded with features. Honda sales rose 8.6 percent, while Volkswagen, mired in an emissions-cheating scandal, posted just a small gain. It had net income of $2.1 billion in the same period of 2014. The housing market’s gradual recovery has made Freddie and Fannie profitable again. Chevrolet was offering zero-percent financing for up to 72 months on a 2015 Camaro, while Toyota advertised $2,000 cash back on a 2015 Avalon sedan.
The average new vehicle transaction price is expected to hit $34,023, a $458 or 1.4% climb from a year earlier.
Advertisement
LaNeve reassured investors that Ford won’t spend more on incentives than it did in October, but will simply shift the money around. The U.S. Environmental Protection Agency on Monday accused VW of cheating on six-cylinder models as well, a charge that VW denies. Jeep brand sales spiked 33%. “Toyota Division posted best-ever sales for the month led by October record-breaking sales of Highlander and RAV4”. Sales of the Nissan Rogue small crossover SUV jumped 70 percent to nearly 25,000.
