The Columbus Dispatch

Hurricane Harvey hurt auto sales last month

- By Dan Gearino

Hurricane Harvey put a damper on auto sales in August, which was on track to achieve modest gains.

But for the highest-profile automaker in central Ohio — Honda — its sales stumble came mostly as a result of an inadequate supply of highdemand crossovers and SUVs.

Its sales fell 2.4 percent in August compared with the prior year.

The automaker on Friday reported August sales of 146,0915, including the Honda and Acura brands.

Sales of the Honda brand were down 1.8 percent, which was almost completely due to a drop of 8 percent in the sales of crossovers and SUVs. Sales of Honda-brand cars were up 4.2 percent, led by the Civic, which was up 11.2 percent.

The entire auto industry was affected by Hurricane Harvey, which led to a dramatic slowdown in sales in the affected areas in the final days of the month.

“With millions of people suffering due to the extreme weather in Texas and neighborin­g states, our thoughts and concerns are focused on their quick recovery, and we are committed to supporting our customers at this difficult time,” said Jeff Conrad, Honda’s top sales executive in North America, in a statement.

Honda assembles the Accord, CR-V and other models in central Ohio and has a local network of parts manufactur­ers. The company is major employer, and its sales are a key part of the region’s economy.

Among other automakers, General Motors said its sales rose 7.5 percent over last August, while Toyota’s were up 7 percent and Volkswagen’s rose 9 percent. All three automakers reported strong sales of SUVs.

Nissan’s sales dropped 13 percent, and Fiat Chrysler’s sales were down 11 percent. Ford’s sales dropped 2 percent. Toyota’s sales were up 7 percent.

U.S. auto sales were initially expected to increase slightly in August compared with a year ago, breaking a sevenmonth streak of sales declines. U.S. sales are plateauing after reaching a historic high last year.

But Harvey has hurt demand in the Houston area — the ninth-largest vehicle market in the nation — cutting U.S. sales of new cars and trucks by 1.3 percent, or 20,000 vehicles, forecastin­g firm LMC Automotive said. Car shopping site Kelley Blue Book now expects that when all sales are tallied, it will show a 1 percent decline in August sales.

That trend won’t last long, however. People with damaged cars will need to replace them quickly. In the month following Superstorm Sandy in 2012, vehicle sales in the New York area jumped 49 percent, said Jonathan Smoke, the chief economist for Cox Automotive, the parent company of Kelley Blue Book.

Smoke estimates that 300,000 to 500,000 vehicles will need to be replaced as a result of Harvey. That demand will help automakers, who can move their excess inventory to Houston. But lower inventory in the rest of the country will mean consumers will be less likely to find good deals, Smoke said.

Newspapers in English

Newspapers from United States