Civic, Accord fuel rise in Honda auto sales
Fueled by increased demand from rental car companies, strong truck and SUV sales, and recovery from hurricanes in Florida and Texas, U.S. monthly auto sales appear to have posted a surprise increase in October.
Until September, sales had declined. But analysts say even a strong finish to the year won’t be enough to match last year’s record sales of more than 17.5 million. Still, the industry should finish 2017 close to the record at about 17 million vehicles.
Honda posted a slight increase in sales for October, helped by a strong showing by the Civic and Accord. Sales of those sedans helped offset a decline in sales of the CR-V.
The Honda and Acura automaker sold 127,353 units for the month, up 0.9 percent from the same month a year ago.
The redesigned 2018 Accord went on sale during the month, contributing to a 4.7 percent increase, which includes the 2017 and 2018 models. Total unit sales came to 26,740, which was third in the company’s lineup behind the Civic and CR-V.
The Accord and CR-V are both mainly assembled in central Ohio. The Civic is assembled in Indiana.
“With key competitors resorting to aggressive discounting and heavy incentives even on new models, Honda is riding the growing momentum of a robust product lineup boosted by the all-new Accord,” said Jeff Conrad, senior vice president of the automobile division at Honda, in a statement Wednesday.
“As the rollout of the new 2018 Accord continues,” he added, “we’re focused on a strong finish to 2017 and a fourth consecutive year of record sales.”
Civic was the top seller with 30,319 units, an increase of 15 percent. Next was the CR-V with 27,773 units, down 8.4 percent.
Analysts and Honda officials had said the CR-V was likely going to be the brand’s top-seller for 2017, helped by a shift in consumer tastes toward SUVs. CR-V sales are indeed up, but Civic sales have held their own.
Year-to-date sales of the Civic are 314,699 units, up 1.5 percent.
That is a healthy lead over the CR-V, whose sales so far total 308,706, up 5.1 percent.
Meanwhile, the Accord has sold 277,542 units, down 2.3 percent.
Overall, Honda, including Acura, is on pace to surpass last year’s record showing, with sales 0.3 percent ahead of last year’s.
Acura, the luxury brand, is not helping, with overall sales down 1.3 percent for the month and down 4.4 percent for the year.
Other automakers, including Ford, Nissan, Toyota and Volkswagen, reported gains. Fiat Chrysler and General Motors reported declines.
At Ford, sales rose 6 percent, thanks to a big gain in F-Series pickup demand and an increase in sales to fleet buyers such as governments and rental car companies. Nissan sales were up 8 percent on record sales of the Rogue small SUV, which were up 43 percent.
Analysts said Nissan also had a big increase in fleet sales, although the company said sales to individual buyers rose as well. Toyota reported gains of about 1 percent, while VW brand sales were up nearly 12 percent.
At Fiat Chrysler, sales dropped 13 percent as a 43 percent cut in fleet sales offset an October record for Ram pickup sales. GM sales fell 2 percent as all four of its brands posted declines.
WASHINGTON — With a new Federal Reserve leader about to be announced, the Fed is keeping its key interest rate unchanged. But it is hinting that it’s preparing to resume raising rates as the economy shakes off the effects of recent hurricanes.
In a statement after its latest policy meeting ended Wednesday, the Fed left its benchmark rate in a low range of 1 percent to 1.25 percent. With the economy on solid footing, the Fed is expected to raise rates for the third time this year when it next meets in December.
Overall, the Fed’s statement suggested a bright economic outlook, with steady if unspectacular growth and a healthy job market. It noted that a loss of U.S. jobs in September was directly related to disruptions from Hurricanes Harvey and Irma. Economists have projected that on Friday the government will report a job gain of 310,000 for October — a dramatic rebound.
In addition, the Fed said that a rise in gasoline prices after the hurricanes would likely prove temporary and that overall price increases remain generally soft. It reiterated its expectation that prices will resume picking up toward its 2 percent inflation target.
The central bank remains confident, the statement said, that the strength of the job market and the overall economy will justify further gradual increases in interest rates.
“The uncertainty about the economic impact of hurricanes has subsided, and the Fed noted the strengthening economy by saying it is expanding at a ‘solid rate,’ said Greg McBride, chief financial analyst at Bankrate. “If that’s not a prerequisite for an interest rate hike next month, I don’t know what is.”
President Donald Trump has said he will announce on Thursday his choice to lead the Fed beginning in February. Jerome Powell, a Fed board member, is assumed to be the top contender.