Significant U.S. automakers’ sales figures for March can be found in below market expectations and provided early evidence that America’s long, robust boom cycle for vehicle sales may finally be slowing.
General Motors and Fiat Chrysler Vehicles shares both dropped almost 4 percent, while Ford Motor was off 3 percent.
Vehicle industry publication WardsAuto put the seasonally-adjusted annualized rate (SAAR) for light car sales in March at 16.53 million units. Market specialist Autodata put industry SAAR at 16.62 million units for the month.
These figures are below the 17.3 million experts polled by Reuters had anticipated, and the first time from August that the SAAR – a crucial market metric – had fallen below 17 million.
March “was a difficult, hard, hard market,” stated Judy Wheeler, vice president of U.S. sales at Nissan Motor, which reported a 3.2 percent boost in March sales. “It’s going to be an aggressive year and I believe everyone recognizes that.”
Market specialists are significantly concerned about increasing inventory levels and customer discount rates as car manufacturers push harder to sell their products. A prices war in the market could undermine automakers’ revenues.
Recently, Moody’s cautioned that flattening U.S. vehicle sales present a significant credit risk for car lenders.
Karl Brauer, executive publisher at vehicle industry consultancy Kelley Blue Book stated that while total sales looked “healthy” in March discount rates “have increased across the board, even on the exact same truck and SUV designs that used to sell themselves.”
Nissan’s Wheeler stated Nissan’s internal data revealed consumer discounts were $441 greater per vehicle than a year earlier and stock levels were on increase.
Nissan trucks, SUVs and crossovers were up 26 percent and had struck record highs, particularly its high-selling Rogue crossover.
Vehicle sales in America have increased since end of the Great Recession and hit a record of 17.55 million in 2016.
