AK STEEL TO BUY AUTOMOTIVE ENGINEERING FIRM FOR $360M
American automakers are reporting that their sales fell in June, new confirmation that domestic auto sales have been softening and may continue to do so.
General Motors said its June U.S. retail sales of 202,908 vehicles were down about 3 percent from the same month last year, even as its crossover retail sales were up 23 percent, fueled by what GM said was the strength of the Chevrolet Equinox.
GM’s June total sales were 243,155 vehicles, down about 5 percent from last June.
Michelle Krebs, an executive analyst for Autotrader, a Cox Automotive brand, said GM’s results demonstrate “the vast divide in the market between cars and SUVs. Chevrolet Cruze and Malibu cars are down 30 percent or more while Chevrolet Equinox and Traverse SUVs are up by as much or more.”
Ford Motor Co.’s June U.S. sales totaled 227,979 vehicles, which was down 5.1 percent compared to last June.
Fiat Chrysler sales dropped 7.4 percent.
However, Honda Motor Co. — one of Ohio’s biggest automakers — said its sales rose nearly 1 percent compared with the previous June, with 139,793 vehicles sold.
Rebecca Lindland, executive analyst for Kelley Blue Book, said consumers are “flocking” to SUVs while foregoing cars.
“But manufacturers have plenty of excellent product out there to satisfy this demand,” Lindland said.
“Only concern is rising inventories for cars, which could result in further production cuts later in the year.”
“Analysts expect June to mark the industry’s sixth consecutive year-over-year decline, closing out the worst first half of a year since 2014,” industry publication Automotive News reported last week.
“The slowing market has prompted LMC Automotive and General Motors to pull back their full-year outlooks.”
The Dayton area is home to plenty of auto parts suppliers employing thousands of workers, including Fuyao Glass America and DMAX in Moraine, Tenneco in Kettering and Navistar in Springfield, among many others. Honda employs some 13,000 people total in west Central Ohio.