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Automakers to report lower sales this July, analysts say
By Kalea Hall
YOUNGSTOWN
With the robust sales and one more selling day during last July, it’s no surprise this July’s auto sales are expected to fall behind.
Kelley Blue Book analysts expect sales to drop nearly 6 percent year- over-year to 1.43 million.
Edmunds analysts predict sales will drop 6.2 percent year-over-year to 1.42 million. Automakers will release their July sales today.
Analysts also say the year-over-year drop shows the slowdown of sales from last year. The industry saw seven years of sales growth and now sales have started to taper.
“Something we see every summer is typically we settle into a relatively consistent selling pace,” said Tim Fleming, analyst for Kelley Blue Book.
Compact sport utility vehicles will continue to dominate the market share in July as cars continue to fall.
“That’s no surprise,” Fleming said.
Full-size trucks are now the second-largest segment after compact sport utility vehicles. Compact cars are now the third largest, but were first for years.
“It does speak to how unpopular cars are,” Fleming said.
The drop in car sales has led automakers to look at cutting back on production. The General Motors Lordstown Assembly Complex, where the Chevrolet Cruze, a compact car, is built has been subject to cutbacks. The plant lost its third shift in January and recently had an extended shutdown to align its Cruze supply with demand.
Kelley Blue Book analysts expect to see a 10.6 percent decline year- over-year in compact-car sales to 177,000. Meanwhile, compact sport utility sales are expected to drop 3.7 percent to 258,000.
“It’s still a big segment, but it is shrinking,” Fleming said.
Most automakers are expected to post a decline in sales today. Analysts predict GM will post a 9.1 percent drop in sales; Ford a 6.2 percent drop; Toyota a 4.3 percent drop; Fiat a 6.9 percent drop; and Honda a 3.8 percent drop.
August sales are typically a stronger summer month partially because of model year closeout deals.
“I think discounts play a role,” Fleming said. “[Dealers] want to sell down the old stock and not have the old product.”