Ford, Nissan, General Motors and Toyota all reported U.S. sales declines in April, strong signs that the demand for cars, trucks and SUV starts to slow, after seven years of growth.
Ford’s sales fell by 7.2 percent, dragged down by car sales fell 21 percent. In the case of Nissan, sales fell by 1.5 percent as SUV demand could not overcome the car braking sales numbers. Sales of the rogue small SUV, which was almost 40 percent, but sales of passenger cars fell almost 14 percent. It was about the same story at General Motors, where sales are not compensated by 5.8 percent, as the strong performance of some SUVs and the Cruze compact was car, pickup truck demand to fall.
Toyota reported a 2 percent decline in sales for the month as healthy sales of the RAV4 small SUV have been overcome by the falling demand for cars like the Camry and Corolla.
Industry analysts expect that in April sales down anywhere from 2 percent to 4 percent, but still with a healthy annual rate of about 17.1 million vehicles. Most of the major car makers report sales figures on Tuesday.
Kelley Blue Book says, it looks like 2017, the US, sales are falling behind last year’s record of 17.5 million Euro for the first annual sales decline since 2009.
While sales are still healthy, the car manufacturer offers for competition a piece of the shrinking pie. But there are signs that the industry is too much on incentives.
The average price paid per vehicle begins to increases wane after years of steady, even for the popular SUVs. Previously SUV prices have grown, while the passenger car prices fell because of the weakness in demand.
The average price paid for an SUV in April of $33,165 was, according to the consulting firm J. D. Power and Associates. That was 2 percent from last April. One reason for the decline was that more customers were buying smaller, less expensive SUVs in this year. But another was incentives a whopping 18 percent increase, hits $3,338 per vehicle.
As automakers released sales figures Tuesday, the company’s shares came under heavy pressure.
The industry was one of the worst on the S&P 500 and Ford share a 2-year approached.
Jeff Schuster, senior vice president of forecasting firm LMC Automotive, said car manufacturers fiercely compete, so you will not lose sales in the hot SUV market. But that can lead to excessive demand, overproduction and high incentives.
“This balance with the natural demand will eventually tarnish relatively soon, or the industry, leading the way in the possible and unhealthy habits,” he said.
Prior to the financial crisis of 2008, the auto manufacturers on incentives to increase sales and preserve market share, to lose, to the point that they were, money on some models.
Last month, incentive-expenditure, an increase of 11 per cent on cars, up to $3,903 per vehicle. The average price for a car, $25,516, which is about the same as last year.
Pick-up trucks, the only segment in which the car manufacturer will be offered, less offers were. Incentive spending was 6 percent to $3,276 per vehicle. The customers were willing to pay $31,438 for a pick-up in April, which was 1 percent more than a year ago.