We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
US Auto Sales Fall in August: What to Expect in the Future?
Read MoreHide Full Article
U.S. light-vehicle sales dropped 3.5% year over year to 1.51 million units in Aug 2016, per Autodata. This is the third month of a sales decline this year. Moreover, sales on a seasonally adjusted annualized rate (“SAAR”) basis declined to 16.97 million units in the month from 17.86 million units in Jul 2016 and 17.79 million units in Aug 2015. Product segments like trucks and utility vehicles continued to record strong sales.
General Motors Company (GM - Free Report) was the leader in terms of sales volume for Aug 2016. Among the six major American and Japanese automakers, FCA US was the only one to record year-over-year sales improvement last month.
Now, let us take a look at the U.S. sales figures reported by individual automakers.
U.S. Automakers
General Motors recorded 256,429 vehicle sales in August, marking a 5.2% year-over-year decrease. Retail sales fell 5.4% to 212,915 units.
Ford Motor Co. (F - Free Report) reported an 8.4% decrease in U.S. sales from the year-ago period to 214,482 vehicles in Aug 2016. Sales volume of the Lincoln brand vehicles advanced 7% year over year to 9,243 units in the month. Sales of the Ford brand declined 9% year over year to 205,239 vehicles.
FCA US LLC – controlled by Fiat Chrysler Automobiles – recorded a 3% year-over-year rise in sales to 196,756 vehicles in Aug 2016.
Japanese Automakers
Toyota Motor Corporation’s (TM - Free Report) sales dropped 5% year over year to 213,125 units in Aug 2016. Sales at the Toyota division declined 4.6% to 182,187 units. Lexus’ sales fell 7.6% to 30,938 units.
Honda Motor Co., Ltd. (HMC - Free Report) recorded a 3.8% year-over-year decrease in sales to 149,571 vehicles in the month. Sales in the Honda Division dropped 3.5% to 135,325 units. Further, sales of the Acura Division fell 7% to 14,246 vehicles.
Nissan Motor Co. Ltd. (NSANY - Free Report) reported a 6.5% year-over-year decline in sales to 124,638 vehicles in August. Sales in the Nissan division slipped 6.9% to 114,199 units, while sales of the Infiniti Division fell 1.8% to 10,439 units.
Outlook
Many analysts believe that U.S. auto sales are reaching a plateau. While sales are expected to remain strong in the second half of 2016, it is not certain if annual sales will be able to surpass the record levels achieved in 2015.
Nevertheless, the U.S. auto sector looks set for a good year, with sales already reaching 11.67 million units in the first eight months. High employment levels, rising personal income, low fuel prices and easy availability of credit are some factors that have been driving sales. Moreover, the high average age of cars on the U.S. roads should continue to boost replacement demand for cars. However, the pressure to maintain the attractive incentives and deals may strain the margins for automakers.
Would you like to see a hand-picked "all-star" selection of investment ideas from the man who heads up Zacks' trading and investing services? Steve Reitmeister knows when key trades are about to be triggered and which of our experts has the hottest hand. Click for his selected trades right now >>
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report predicting the 7 stocks that will soar highest in the coming month.
Image: Bigstock
US Auto Sales Fall in August: What to Expect in the Future?
U.S. light-vehicle sales dropped 3.5% year over year to 1.51 million units in Aug 2016, per Autodata. This is the third month of a sales decline this year. Moreover, sales on a seasonally adjusted annualized rate (“SAAR”) basis declined to 16.97 million units in the month from 17.86 million units in Jul 2016 and 17.79 million units in Aug 2015. Product segments like trucks and utility vehicles continued to record strong sales.
General Motors Company (GM - Free Report) was the leader in terms of sales volume for Aug 2016. Among the six major American and Japanese automakers, FCA US was the only one to record year-over-year sales improvement last month.
Now, let us take a look at the U.S. sales figures reported by individual automakers.
U.S. Automakers
General Motors recorded 256,429 vehicle sales in August, marking a 5.2% year-over-year decrease. Retail sales fell 5.4% to 212,915 units.
Ford Motor Co. (F - Free Report) reported an 8.4% decrease in U.S. sales from the year-ago period to 214,482 vehicles in Aug 2016. Sales volume of the Lincoln brand vehicles advanced 7% year over year to 9,243 units in the month. Sales of the Ford brand declined 9% year over year to 205,239 vehicles.
FCA US LLC – controlled by Fiat Chrysler Automobiles – recorded a 3% year-over-year rise in sales to 196,756 vehicles in Aug 2016.
Japanese Automakers
Toyota Motor Corporation’s (TM - Free Report) sales dropped 5% year over year to 213,125 units in Aug 2016. Sales at the Toyota division declined 4.6% to 182,187 units. Lexus’ sales fell 7.6% to 30,938 units.
Honda Motor Co., Ltd. (HMC - Free Report) recorded a 3.8% year-over-year decrease in sales to 149,571 vehicles in the month. Sales in the Honda Division dropped 3.5% to 135,325 units. Further, sales of the Acura Division fell 7% to 14,246 vehicles.
Nissan Motor Co. Ltd. (NSANY - Free Report) reported a 6.5% year-over-year decline in sales to 124,638 vehicles in August. Sales in the Nissan division slipped 6.9% to 114,199 units, while sales of the Infiniti Division fell 1.8% to 10,439 units.
Outlook
Many analysts believe that U.S. auto sales are reaching a plateau. While sales are expected to remain strong in the second half of 2016, it is not certain if annual sales will be able to surpass the record levels achieved in 2015.
Nevertheless, the U.S. auto sector looks set for a good year, with sales already reaching 11.67 million units in the first eight months. High employment levels, rising personal income, low fuel prices and easy availability of credit are some factors that have been driving sales. Moreover, the high average age of cars on the U.S. roads should continue to boost replacement demand for cars. However, the pressure to maintain the attractive incentives and deals may strain the margins for automakers.
Auto-Tires-Trucks Sector Price Index
Auto-Tires-Trucks Sector Price Index
Confidential: Zacks' Best Investment Ideas
Would you like to see a hand-picked "all-star" selection of investment ideas from the man who heads up Zacks' trading and investing services? Steve Reitmeister knows when key trades are about to be triggered and which of our experts has the hottest hand. Click for his selected trades right now >>