Auto sales cool off in April
Nissan reports stunning 28% decline.
Most major automakers reported sales declines in April as the industry continued to cool off from a record pace set in 2016.
Edmunds.com projected an overall sales slump of 6%, while Cox Automotive predicted a decline of 3.6%.
Still, shoppers bought new vehicles at a healthy clip, with economic conditions remaining strong. Recent increases in interest rates have not been enough to scare off consumers, Cox Automotive chief economist Charlie Chesbrough said.
“There’s very few concerns out there that we can see right now that (are) going to impact vehicle buying,” he said.
An industry-wide shift from passenger cars to crossovers, SUVs and pickups continued last month.
Ford has announced that it would discontinue the Fusion, Taurus and Fiesta cars within a few years. General Motors says it plans to scale back production of the Cruze compact car. It is also rumored to be considering killing the Impala and Sonic sedans.
In the biggest surprise, Japanese automaker Nissan reported a stunning sales decline of 28%. The results indicate that Nissan is slashing its sales to fleet customers such as daily rental companies, which are less profitable than sales to individuals, analysts said.
Even the Nissan Rogue crossover, among the industry’s hottest sellers in recent months, took a step back, with sales down 14.8% to 23,331.
April marked the first month that Detroit-based GM did not report its monthly sales figures. The company said it would focus more on long-term results, choosing to report sales on a quarterly basis instead.
But other automakers continued releasing monthly figures.
Ford’s struggles continued as sales declined 4.7%. The company’s F-series pickups outsold all of its SUVs —
73,104 to 69,640. Autotrader analyst Michelle Krebs said Ford badly needs forthcoming overhauls of the Explorer and Escape SUVs.
Fiat Chrysler’s red-hot Jeep brand led the company to a 4.5% overall sales increase. Jeep was up 20% as the redesigned Wrangler thrives.
“Jeep’s very much back in the game” after a “very painful transition year” last year, when the brand was awaiting new models, Krebs said.
Toyota’s overall sales slipped 4.7%. The automaker’s passenger cars struggled, recording a 12.7% decline. But its crossovers, SUVs and pickups collectively rose 1.6%.
Honda’s sales declined 9.2% as the company’s decision to limit discounts took a toll on overall sales, although it should help preserve resale values.
Volkswagen’s main brand posted a
4.5% sales increase, benefiting from the Atlas and Tiguan SUVs.
Subaru pulled off its best April ever, almost entirely because of a popular redesign of the Crosstrek.