Automakers report strong gains
Demand for pickups and SUVs helps boost sales in September.
The auto industry posted its first monthly sales gain of the year in September, led by strong truck and SUV sales and the replacement of cars destroyed by Hurricane Harvey in Texas.
U.S. sales rose 6.1% to slightly more than 1.5 million vehicles, according to Autodata Corp., as Toyota, Honda, Ford, General Motors, Nissan and Volkswagen all posted strong numbers. Of major automakers, only Fiat Chrysler and Hyundai reported sales declines.
Industry analysts predicted that positive sales would continue through the end of the year, fueled by customers whose cars were destroyed by Harvey and Hurricane Irma in Florida. But sales aren’t expected to be strong enough to match last year’s record of more than 17.5 million.
Christopher Hopson, manager of light-vehicle forecasting for IHS Markit, said September had a perfect mix of hurricane replacement demand, high incentives, rising fleet sales and strong sales of outgoing 2017 models.
GM reported on Tuesday that sales rose 11.9% from a year earlier, while Ford sales rose 8.7%. Toyota posted a 14.9% increase, while Nissan sales were up 9.5% and Honda sales rose 6.8%. Volkswagen said its sales rose 33.2% over numbers that were depressed a year earlier by its diesel emissions cheating scandal.
Fiat Chrysler sales fell 10% and Hyundai, which relies on cars for much of its results rather than sport utility vehicles and trucks, saw sales fall 14.4%. Both blamed reductions in sales to big fleet buyers such as rental car companies.
Industry analysts had predicted a small sales rise for the month. But automakers, aided by hurricane sales, powered past the forecasts. For the first nine months of the year, overall industry sales were down 1.8%.
Ford gained 5,000 to 6,000 unit sales in September from the replacement of flooded cars in the Houston area, where it offered employee pricing. But it lost about 1,000 vehicle sales in Florida due to closed dealerships, Mark LaNeve, vice president of sales and marketing, said on a conference call.
He said he expects industry sales to get a boost through the rest of the year from cars being replaced because of hurricane damage.
Strong pickup truck and SUV sales propelled the September increase. Sales of Ford’s F-Series pickup rose 21% from a year earlier, while SUV sales were up 8.8%. Inventory levels dropped to a 72-day supply, and LaNeve said Ford may even increase production to raise that a little.
Automakers have been trimming production, especially of cars, for much of the year.
Even car sales, which have been battered during the last few years as buyers switched to SUVs and trucks, showed a bit of life. Toyota’s mid-size Camry posted a 13% sales gain as allnew 2018 models reached showrooms.