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Analysts expect auto sales to rise in February
By Kalea Hall
YOUNGSTOWN
The Honda Civic, chief competition for the Lordstown-built Chevrolet Cruze, is expected to lead sales for the automaker in February, analysts say.
For General Motors, however, the larger vehicles are expected to lead sales as the Lordstown plant workers build the next-generation Cruze for its spring debut.
“What you always see is a ton of new interest when new models and new products launch,” said Tim Fleming, analyst at Kelley Blue Book. “That will happen with the Cruze when that launches.”
Automakers will release their February sales today. Sales are expected to be up as much as 9 percent with the two extra selling days this month and the President’s Day sales.
KBB expects American Honda to post the largest increase in sales year over year despite the stop-sale the automaker placed on the new Civic, which debuted last fall. Honda recalled certain model year 2016 Civic vehicles manufactured Sept. 22 to Feb. 3 equipped with 2.0-liter engines because some of the vehicles’ piston wrist pin circlips may not be secured.
The Civic still remains popular with consumers. KBB analysts say it has averaged 45 days in dealer inventory before selling, much lower than the compact-car segment average of 80 days.
Overall, KBB expects American Honda to post a 12.8 percent increase in sales year over year. Ford will follow behind with an 8 percent increase. GM’s sales are expected to increase 8 percent, but analysts say that is driven by the automaker’s plan to focus on retail sales and pullback on fleet.
“It’s going to be good for their long-term profits and long-term residual values,” Fleming said. “It’s not just about the sales numbers. They are making pretty good profits.”
The Chevrolet Silverado is once again expected to be a top seller for the automaker. The first-generation Cruze has taken a hit in sales lately after five years on the market. Sales for the compact car came in at 14,362, compared with sales of 18,693 reported in January 2014.
KBB expects overall sales to hit 1.37 million for a 9 percent year-over-year increase, while TrueCar analysts predict a 6.6 percent year-over-year increase to 1.34 million sales.
Analysts at TrueCar do not see the stock market volatility having an impact on the auto industry. They note other economic conditions, such as the low U.S. unemployment rate and low gas prices, having a positive impact on the industry.
“Low gas prices are still causing compact utilities to have the hottest segment in the industry,” said Eric Lyman, vice president of industry insights for TrueCar.