U.S. auto sales fall for fourth straight month in June
Top auto makers reported a fourth consecutive month of US new vehicle sales for June and were below analysts’ expectations, despite huge discounts for consumers and more flexible credit standards, providing new evidence That 2017 will not be less than the record year last year for the industry.
However, auto makers stock rose, while retail sales to consumers were relatively stable to US auto makers General Motors Co (GM.N) indicating that the industry was in place for A good end of ‘year.
The Autodata consultant industry places the industry’s temporarily adjusted annual sales rate at 16,510,000 units, or the lowest level since February 2015. It was below Wall Street expectations 16.6 million vehicles and 2% lower Than in June 2016.
US consumers continued to avoid trucks for trucks, vans and larger crosses. Sales of passenger cars were also affected, as some car manufacturers, including GM, have moved to reduce sales from relatively low-margin rental agencies.
The US auto industry has sought a slowdown after reaching a record 17.55 million new vehicles sold in 2016. A drop of almost new used vehicles pose competition for new vehicle sales and car manufacturers have increasingly resorted to To consumer discounts and weakened credit conditions.
Automotive trading site Edmunds said the average length of auto loans reached a record high of 69.3 months in June.
“It’s a financial risk, leaving exposed borrowers to invest in their vehicles for a large portion of their loans,” said Jessica Caldwell, general industry analysis director Edmunds.
GM said its sales fell by about 5% from June 2016, but the industry will see higher sales in the second half of 2017 compared to the first half.
“Total sales in the United States are moderate due to a decline in total daily sales, but the key US economic fundamentals are clearly positive,” said chief economist Mustafa Mohatarem GM. “Under current economic conditions, we expect retail sales to the United States vehicles will remain strong in the foreseeable future.”
Ford Motor Co (FN) said its June sales were hit by sales of lower fleets to rental agencies, companies and government entities, which fell 13.9%, while consumer sales were stable.
Wall Street analysts are concerned that millions of low-mileage and all-rented vehicles planned to hit the market in late 2019 will weigh on future new vehicle sales.
Ford’s vice president of marketing, sales, and service in the United States, Mark LaNeve, said during a conference call that the automaker has just shown its competitors to reduce their reliance on credit – a bill to close a sale.
GM shares added 1.8% on Monday, while Ford’s shares rose 3.3%.
Automobiles Fiat Chrysler NV (FCA) (FCAU.N) said June sales fell 7 percent from the same month a year earlier.
But Toyota brand Lexus’ luxury car sales fell 5.4% during the year.
Nissan Motor Co Ltd (7201.T) said its sales in the United States rose 2 percent. But while sales of trucks, SUVs and crossovers rose 19.5%, sales of sedans fell 12.1%.
In recent years, Americans have increasingly avoided small passenger cars for larger vehicles.
Honda Motor Co Ltd (7267.T) said June sales rose 0.8 percent.