The Atlanta Journal-Constitution
Autosales
according to researcher Autodata Corp.
With five of the biggest automakers in the U.S. having beaten May estimates, the seasonally adjusted pace of sales probably beat the average projection of 16.7 million cars and light trucks. General Motors, the biggest U.S. automaker, stopped reporting monthly results after March.
Even expensive gasoline isn’t the economic bugaboo it once was. American consumers are shrugging at the sight of pump prices nearing $3 a gallon for the fifirst time in years and plowing ahead with purchases of big pickups and SUVs.
With the U.S. unemployment rate matching the lowest in48 years and consumer confifidence on the rise, gasoline will have to get more expensive to have any meaningful impact in buying patterns.
The light truck segment — which includes pick ups, SUVs and crossovers — has been seizing record share of the U.S. auto market, prompting Ford and Fiat Chrysler to pull the plug on many of their passenger cars.
“Themovement into SUVs and out of cars is accelerating,” Mark LaNeve, Ford’s U.S. sales chief, said on a conference call Thursday. “If fuel prices becomea concern for the customer, instead of moving into a sedan, they move into a smaller SUV or a newer one with better fuel economy.”
So far, Nissan has seen no impact from rising fuel prices, said Billy Hayes, the U.S. division vice president for the brand in the U.S.
“Themarket doesn’t seem to be responding to fuel prices at all,” Hayes said in a phone interview. “We’re not hearing about any reaction from consumers. Is the magic number $4 a gallon, or $5, or $6? I don’t know. We’re well positioned to absorb anything that hits.”
Another presumed head-wind may have little effect — or even provide a temporary boost — to demand.
Rising interest rates probably reached highs not seen since 2009 last month, according to researcher Edmunds.
“Since interest rates have been creeping up all year, shoppers are likely thinking it’s better to buy now before rates get any higher,” Edmund san a ly st Jeremy Ace---
vedo said. “However, this is likely a temporary pull-ahead effect, and could come back to bite automakers later in the year.”
The drumbeat of political news, such as trade wars with China and U.S. allies Canada, Europe and Mexico, has contributed to some stockmarket tumult. But it’s not affecting consumers, said Jeffff Schuster, senior vice president of forecasting for researcher L MC Automotive.
“We’re looking at auto sales that are outperforming expectations again,” Schuster said. “Most people have compartmentalized the political environment from their personal environment and said, ‘All of that noise and volatility can continue, but I’m going to live my life.’ ”