Auto sales expected to come in below expectations

Staff report

U.S. auto sales in January are expected to come in below expectations for a number of automakers.

“The sales pace looks to be in the upper 16 million [vehicles] level, a level not seen since summer 2018 when the SAAR (seasonally adjusted annual rate) fell to 16.7 million in July and August,” said Charlie Chesbrough, senior economist for Cox Automotive.

Cox said the cold weather likely had a negative impact on sales – but the weather wasn’t the only aspect bringing them down.

“We also believe the government shutdown had an impact, from delayed purchases by furloughed workers to a more general feeling of uncertainty in the market,” Cox said. “Consumer confidence took a hit in January, with both the University of Michigan and Conference Board’s metrics showing large declines. Lower optimism reduces the number of potential vehicle buyers, a trend we are likely to see more of in 2019.”

General Motors and Ford no longer release monthly sales figures, but analysts provide estimates of the top two manufacturers’ sales. Together, GM and Ford represent about 30 percent of the U.S. auto market.

Fiat Chrysler Automobiles US said Friday January U.S. sales rose 2 percent to 136,082 vehicles, compared with sales of 132,803 vehicles in January 2018.

American Honda posted a 1.5 percent sales increase.

Toyota Motor North America reported January 2019 sales of 156,021 vehicles, a drop of 6.6 percent from 167,056 units a year ago.