US auto sales expected to drop in August

In July, total industry auto sales in Canada dipped almost three per cent compared with the same month a year earlier. Total sales through August are up less than 1 per cent over past year.

The Detroit-based company sold 212,915 vehicles to individual or retail customers in August, which was down about 5% from past year. Ford’s overall sales fell 8 per cent to 214,482. “Our retail strength is reflected in our record average transaction prices in August, which were up more than $1,600 from July and almost $5,800 above the industry average while our incentive spending was below the industry average and well below our domestic competitors”.

Of the seven top manufacturers by sales, only Fiat Chrysler Automobiles reported a gain versus s year ago, when sales were restated to about 11,000 fewer than originally reported. The Dodge and Ram Truck brands also performed well, posting 5.1% and 1.6% increases, respectively.

USA auto sales fell in August and some major automakers said on Thursday a long-expected sales decline had probably begun. LMC Automotive forecasting chief Jeff Schuster now thinks it will be increasingly hard for the industry to match last year’s performance. “With mixed economic signals, it certainly looks like the US auto sales may have peaked in 2015”.

GM expects that 2016 will not be repeat of the record high for US auto sales set previous year. Cadillac sales totaled 16,346 units in August.

Under the new method, reported sales would have been higher in 2011, 2013 and 2016 to date, and lower in 2012, 2014 and 2015.

Analysts were expecting sales to drop 5.7%.

Cadillac retail sales rose 3.9% in August, following a 1.4% increase in July. The company has been keeping vehicle supplies trim in an effort to reduce spending on discounts and boost resale values. Bryan Bezold, Ford’s USA economist, said that in the years following the recession the auto market recovery was stronger than the overall economy, largely due to the pent-up demand.

“It wasn’t exactly a blockbuster month in August, so that puts extra pressure on the industry to step up its game in September, especially this coming Labor Day weekend”, said Edmunds.com analyst Jessica Caldwell.

Fiat Chrysler bucked the downward trend reporting a 3% rise in vehicles sales for August.

GM reported that its average August transaction prices rose to $36,730 from July’s average of $34,887.

Demand is softening despite model year-end clearance sales, low gas prices, low interest rates and other enticements.

Cars took the most serious beating in August as buyers continued to flock to SUVs.