U.S. auto sales probably rebounded in June after a slowdown in May, a recovery limited by shortages of vehicles from Toyota Motor Corp. and Honda Motor Co. that led some would-be consumers to put off buying and car shipping.http://www.blogger.com/img/blank.gif
June light-vehicle deliveries may have run at a 12 million seasonally adjusted annual rate. That would be an increase from 11.8 million in May, when sales set the slowest pace in eight months.
Toyota and Honda, having lost production after the 9.0- magnitude earthquake March 11 near Japan, may each report sales declines of 13 percent, while deliveries by U.S. automakers General Motors Co. and Ford Motor Co. may rise at least 12 percent. Persistent unemployment and a depressed housing market are hurting new-vehicle demand.
The first issue is still going to be inventory and the lack thereof for Toyota and Honda. The second issue, and it’s becoming an annoying issue and a concern until change is seen, is the soft patch in the economy. The housing numbers still stink, and there are issues with jobs and confidence.
The U.S. unemployment rate rose to 9.1 percent in May. Confidence among U.S. consumers in June fell to a seven-month low, and the percentage of consumers planning to buy a new vehicle within six months fell to 3.1 percent, the lowest since December. The percentage of consumers planning to buy a home within six months slid to 3.7 percent, also the lowest since December.
Inventories bottomed this month at Toyota, the world’s largest automaker. Vehicle production at the Toyota City, Japan-based automaker’s North American plants will return to normal in September.
Toyota is among members of the Japan Automobile Manufacturers Association shifting domestic output to weekends from July to September to spread out energy use and help avert blackouts. Domestic Japanese production in May fell 31 percent to 489,723 vehicles.
One Toyota dealership manager said they were losing a little bit of their business to the domestics, or people are on the fence waiting for them to get more inventory. They currently have 80 cars on their lot compared with 350 to 400 in normal times. The dealership had five Prius hybrids, which usually accounts for about half of sales, in stock earlier this week.
Honda, the second-largest Japanese automaker by U.S. sales, forecast a
63 percent decline in full-year profit on June 14, citing output of key models such as the Civic that the company says should normalize by November.
GM, the largest U.S. automaker, may report an 18 percent increase in deliveries, the average estimate of seven analysts. The largest Chevrolet store in New York had a weaker month for truck sales in June than May. June started off briskly but has slowed down. Car sales were consistent but their truck business was definitely soft. What is alarming is that they are not seeing the truck and SUV traffic they have been seeing.
Average U.S. gasoline prices dropped 26 consecutive days through June
28 to $3.54 a gallon for regular unleaded, according to AAA. Prices peaked at $3.99 on May 4, the highest level since July 2008.
Sales for Ford, the second-largest U.S. automaker, may have gained 12 percent. Dearborn, Michigan- based Ford’s truck sales may have dropped a second-straight month after 17 consecutive increases.
Deliveries of smaller cars such as Ford’s Fiesta and Focus and GM’s Chevrolet Cruze have helped the two manufacturers gain share from competitors.
Pickup sales and auto transport are rebounding from market-share lows in April, although they may still lose market http://www.blogger.com/img/blank.gifshare this month from a year earlier. Greater availability of models such as the Focus and Fiesta, which have fallen to 20-days supply, will help industry sales rebound in the second half.
GM rose 6 cents to $30.36 at 4:01 p.m. in New York Stock Exchange composite trading. Ford climbed 37 cents, or 2.8 percent, to $13.79.
Chrysler may lead U.S. automakers with a 26 percent increase in sales, according to the average of five analysts’ estimates. The Auburn Hills, Michigan-based automaker is getting a boost from new models such as the Chrysler 200 and Fiat 500, which starts a national marketing campaign on July 4.
Nissan Motor Co., Japan’s second-biggest carmaker, may report a 25 percent increase in deliveries for June, the average of four estimates. Yokohama, Japan-based Nissan may outspend Ford this month on incentives, according to TrueCar.com data.
The light-vehicle sales rate in June may be just below 12 million, J.D. Power & Associates said today in a statement. Deliveries slowed in the third week of the month, the Westlake Village.
Light-vehicle sales climbed to 11.6 million in 2010 from a 27-year low of 10.4 million in 2009. Deliveries still were 31 percent fewer than the 16.8 million annual average from 2000 to 2007.
