Auto Sales Down Again for Big Car Makers

Demand is down again for automobiles in April, after an already weak March 2017. Overall, in April, numbers were down 5% for April 2017 versus April 2016.[1]

 

Toyota already has 2018’s on their website.

 

Demand overall is down, with the big automakers suffering the most (April 2017 over April 2016):

  • Ford down —7.4%
  • General Motors down —5.8%
  • Dodge down —2.6%
  • Toyota down —2.7%
  • Honda down —7%

In March, according to Motor Intelligence, passenger cars were down 11.5%, although trucks were up, netting light vehicle sales down 1.5%. [March 2017 numbers as chart below.][2] This marks the fourth monthly drop.

US Auto Market Sales March 2017.

 

For Aprill, analysts had expected a drop of 4%. Demand for light trucks and SUVs remained better, but not sufficient to offset the drop in car numbers. Volkswagen is the only major brand to beat the overall declines, with a modest 1.6% increase, following on the heels of 5 previous months of gains. The VW-Audi brand is forecast to drop 0.4% however.

 

Despite a drop in sales, GM overall reported increased net income.

 

Within carmakers, individual brands fared differently. At Ford, the main Ford brand dropped —7.4% while the luxury Lincoln brand was only down marginally at —0.9%. Toyota flips that around, with Lexus, their luxury mark, down —11% while the main Toyota brand is down —3.5%

90-Day Inventory and Discounts

Although car companies shoot for 60 days or less inventory, the big car companies roll into April with 90-Day inventories on average. Spring is normally a “hot” time for car sales, but the manufacturers are coping with remaining 2016 stock. This should be positive for consumers looking for deals — discounts or zero-percent financing.

 

Ford’s car lineup 2017.

 

April shows that incentive spending per average vehicle was $3814 in April, which is a negative trend, up nearly $500 from last year in April. This represents above 10% of price as incentive spending, versus the more typical 7.5%-9% ranges. Declining demand and overstocked inventory should see more discounts in spring 2017.

 

Honda car lineup 2017.

 

 

NOTES:

[1] Calculated by Automotive News based on reports from manufacturers (Source Automotive News Data Centre).

[2] Reported by Motor Intelligence

Did you miss this?

Other Popular Stories

  • News of extra jobs tempered by caution in Ontario auto sector
  • Worker mobility key to construction's labour shortage
  • Solar power poised for worldwide growth
  • Canada's prosperity at risk from disruption, lack of skilled workforce: reports
  • Researchers studied successful manufacturers for lessons for the future
  • Gold miners expand production in Nunavut, estimated reserves in BC
  • Shed a tear for science? University researchers in Ireland harvest electricity from tears
  • Fuel cell market will double in five years: report
  • Renewables poised for big growth in short term: IEA
  • MRO in space: Inside a routine Maintenance-Repair-and-Overhaul mission with NASA: sealing, lubricating and keeping cool
  • NASA says human Mars landing is feasible by 2030s
  • LNG activity heating up in BC as Petronas seeks export licence
  • Ford’s 347 kph GT: World's fastest supercar a testbed for new automotive technology
  • Global Warming Cap Could Save Economy Trillions
  • GE investment in Welland "Brilliant Factory" to bring 220 jobs
  • Unusual hydrogen car could soon be built in UK
  • Natural gas industry outlines challenges, opportunities in Canada
  • Government pledges continued support as National Mining Week begins
  • Shipyard receives $65.4 million under national shipbuilding strategy
  • Siemens awarded largest ever contract for onshore wind turbines
Scroll to Top