Comments About February 2017 US Auto Sales
 |
Overall Industry/February 2017 Auto Sales Commentary:
From Karl Brauer, executive publisher for Autotrader and Kelley Blue Book:“It’s not surprising to see mix of market gains and losses as overall new-car sales plateau. General Motors, Honda, Nissan and Volkswagen had the right combination of product, incentives and market demand to improve while Ford, Chrysler, Toyota and others couldn’t stay ahead of last year’s numbers. It’s clear new-car sales will remain strong for the near-term, with most automakers staying at or near their historic highs for volume. But seeing another record year for car sales in 2017 appears unlikely.” From Rebecca Lindland, executive analyst for Kelley Blue Book:
“February sales overall appear to be healthy. Consumer confidence is high and the stock market is roaring. What we have, though, is a market that is evolving, not growing. SUVs and trucks are up, but cars are way down so the overall results are flat. As we move from a growth market to an evolving market, it will be more important than ever for automakers to carefully manage inventory, production and incentives.” From Michael Harley, executive analyst for Kelley Blue Book:
“Automakers are still producing vehicles at a rate to feed last year's record sales, which means there is a surplus of new cars and trucks sitting on lots. Consumers, with a high level of confidence in the economy, have been lured into well-inventoried showrooms by large incentives and discounts. While not the ideal business model for the industry, it is the perfect recipe to boost sales in crossovers, SUVs, and pickups.” From Michelle Krebs, executive analyst for Autotrader:
“February car sales are coming in about as expected. The better indicator of where 2017 is headed will be March, one of the biggest sales months of the year. Signs are promising. The Conference Board says, thanks to a healthy employment picture, consumer confidence is the highest since 2001 with many consumers indicating they intend to buy vehicles. Shopping seems to be strong.”
“Anyone who thought declining sales of traditional cars had bottomed out is sadly mistaken. Midsize cars, in particular, continue to drop by double digits, and, in some cases, despite hefty incentives.”
From Rahim Zohaib, Associate Manager – Industry Analytics, Cox Automotive:“Sentiment and expectations about the economy are continuing to run high. Dow 20k is now a museum piece as equity markets continue to hit all-time highs. ISM Manufacturing report for February came in at the highest reading since August 2014; the Index of Consumer Sentiment moved upward in late February. With consumers in a good spot, it will be interesting to see what increases in inflation expectations and disposable incomes have on overall consumer spending. In the short term, new auto sales should continue to stay elevated.” Andy MacLeay, Director of Digital Marketing, Dealer.com:
“Overall traffic on our Dealer.com websites was strong in February – at a good level – although the level is roughly flat versus year ago. What we are seeing is continued, strong migration to mobile. People seems to be on the lots, viewing data, comparing cars. On President’s Day weekend, the spike in mobile shopping was 25% higher than last year and 34% higher than 2015.” (Dealer.com, a Cox Automotive company based in Burlington, Vt., runs 62 percent of the nation’s dealer websites.) Brad Korner, general manager for AIS Rebates:
“Incentives remain high with numerous programs and significant dollars in play to help sustain sales. Incentives are being used as strategic advertising by the automakers and dealers to drive showroom traffic and excite in-market buyers. Smart incentives may be more effective marketing tools than high-dollar ad campaigns, like those that run during the Oscars or the Super Bowl.” (AIS Rebates, a Cox Automotive company, is an industry leader in rebate and incentive research, publication and analysis.) FCA Commentary
From Michelle Krebs, executive analyst for Autotrader:
“February marked the second consecutive month of double-digit sales declines for Fiat Chrysler. The automaker is finally doing what General Motors and Ford did some time ago – lower less-profitable fleet sales – and that shows in the bottom-line results. In addition, a number of Jeep products are in transition, being replaced or in sell-down mode.”
From Michelle Krebs, executive analyst for Autotrader:
“Ford’s February sales performance falls in line with the story that is playing out industry wide: truck and SUV sales up, car sales down. Where is the bottom for midsize sedans like the recently freshened Ford Fusion and smaller Ford Focus?”
From Michelle Krebs, executive analyst for Autotrader:
“General Motors had a strong month from the vehicles that matter in terms of profits: SUVs, trucks and commercial vehicles. The automaker designated February as truck month, with some hefty incentives on some versions of the GMC Sierra and Chevrolet Silverado, which paid off with double-digit sales increases.”
From Michelle Krebs, executive analyst for Autotrader:
“Nissan defied analysts by posting a positive sales increase versus a predicted negative one. Infiniti’s new products are getting traction, and Nissan’s utilities, led by the Rogue, are getting the job done. Nissan Altima posted a 6 percent decline, despite truck-sized incentives of about $5,000 last month.”
