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June auto sales expected to decline
By Kalea Hall
YOUNGSTOWN
Auto analysts expect sales of new vehicles continued to plateau in June.
Year-over-year sales are expected to have declined as much as 4 percent, but analysts stressed that the month and the year have both had solid sales.
Automakers will release their June sales figures today.
“It’s not like the sky is falling,” said Akshay Anand, executive analyst for Kelley Blue Book. “Automakers are now realizing that the growth environment is over and it’s more of a stable environment.”
Auto sales have grown for the past seven years. Last year was the best year ever for new auto sales with 17.5 million vehicles sold.
“We had several years of explosive growth,” Anand said.
KBB analysts expect to see a 4 percent decline in sales to 1.46 million in June. Both June 2016 and June 2017 had 26 selling days.
Edmunds analysts expect data to show that 1.48 million new cars and trucks were sold in the U.S. in June, a 2.3 percent decrease from June 2016.
“For the last few years, SUVs almost seemed to sell themselves, but as the market starts to level off, automakers are having to work a little harder and make the deals a little bit sweeter to hit their sales targets,” said Jessica Caldwell, Edmunds’ executive director of industry analysis. “The silver lining is that SUV demand isn’t completely hitting the wall, but even this hot segment isn’t immune to the dip the entire market is experiencing this year.”
Cars have taken the largest hit in sales. KBB analysts expect data to show compact-car sales dropped 5.3 percent to 193,000 in June. Midsize cars are expected to have dropped 11.1 percent to 159,000.
“I think concern for car segments in general is warranted just because now it is when things are plateauing,” Anand said.
Locally, the slide in car sales has affected the General Motors Lordstown Assembly Complex where the Chevrolet Cruze, a compact car, is produced. Production of the Cruze has been cut back with the ending of the third shift in January and multiple layoff weeks scheduled.
“For production cuts, we are seeing cars get affected more than SUVs,” Anand said.
GM said earlier this month it would eliminate a shift at the plant in Fairfax, Kan., where the Chevrolet Malibu is built.
Fiat Chrysler Automobiles has decided to end production of passenger-car models in the U.S. Ford also is ending U.S. production of small cars. The Detroit automaker will move its Ford Focus production to China.