Skip to main content
Sister Publication Links
  • European Rubber Journal
  • Plastics News
web
Subscribe
  • Login
  • Register
  • Subscribe
  • News
    • International Elastomer Show
    • Automotive
    • Tire
    • Non-Tire
    • Suppliers
    • Executive Action
    • Government/Legal
    • ITEC
    • Opinion
    • Technical Notebooks
    • HEXPOL Sponsored Content
    • Starting young: Rubber Division targets high schools to fill talent gap
      ChemSpec enjoying busy 2019 with new agreements, division
      view gallery
      18 photos
      Rubber Division honors leaders, students at Business and Awards Meeting
      view gallery
      9 photos
      Rubber Division wraps up 2019 International Elastomer Conference
    • Auto parts makers pay $23 million to settle price fixing case
      Many lessons learned—and some underway—on EV battery safety
      GM, LG Chem form joint venture to make batteries near Lordstown
      Goodyear to supply intelligent tires to fleets in Europe
    • Tyromer appoints chair of board
      In the workplace, two languages are spoken
      Goodyear to supply intelligent tires to fleets in Europe
      Roderic Quirk named National Academy of Inventors Fellow
    • Auto parts makers pay $23 million to settle price fixing case
      Brenntag opens innovation center in Pennsylvania
      In the workplace, two languages are spoken
      Denso exec keeps AV sights set on Level 2
    • Brenntag opens innovation center in Pennsylvania
      New Products: Master Bond rolls out thermally conductive epoxy sealant
      In the workplace, two languages are spoken
      DRI makes deal, invests for future growth
    • Tyromer appoints chair of board
      Kent Elastomer promotes two
      3D specialist Carbon hires former DuPont CEO Kullman as new leader
      Struktol names Mark Skakun new president
    • Auto parts makers pay $23 million to settle price fixing case
      USTMA aims to raise scrap tire recovery rate
      Aeolus, Onyx discussing truck, bus tire joint venture in Sri Lanka
      ETRMA praises EU's tire labeling regulation efforts
    • Goodyear finds traction with soybean oil
      Cassioli expands with sales office in Alabama
      Rodolfo Comerio looks forward as it celebrates past
      Tire Industry Project launches platform for sustainable natural rubber
    • Column: Lessons from Best Places to Work
      Editorial: Cooper Standard a sign of changing automotive times
      Editorial: Hose industry makes big strides in safety focus
      Column: Meeting new faces at Rubber Expo
    • SSBR, bio-sourced plasticizer for conveyor belt use
      EPDM solution for automotive dense weatherstrip
      High heat resistant EPDMs for auto hose uses
      Rubber standards in today’s world economy
    • Sponsor Content
      Rubber in Transportation and Tire
      Sponsor Content
      Rubber in Wire and Cable
      Sponsor Content
      Process Control Systems Ensure Consistency and Lot Traceability While Protecting Proprietary Formulations
      Sponsor Content
      Reasons for Using Performance Additives
  • Blogs
    • Products
    • Wacky World of Rubber
    • New Products: Master Bond rolls out thermally conductive epoxy sealant
      New Products: Lanxess introduces vulcanization accelerator
      Covestro's CO2 technology earns Germany's President's prize
      New Products: LSR 3D printing technology spotlighted at K Show
    • Wacky World of Rubber: Floating ideas for the future of mobility
      Wacky World of Rubber: Goodyear, rubber industry make parade part of Thanksgiving traditions
      Wacky World of Rubber: How to make your own Halloween mask
      Wacky World of Rubber: 'Ode to a Tire'
  • Newsletters
    • Rubber in Automotive
    • Silicone News
    • Latex News
    • Sign Up for Newsletters
    • Auto parts makers pay $23 million to settle price fixing case
      Many lessons learned—and some underway—on EV battery safety
      GM, LG Chem form joint venture to make batteries near Lordstown
      Goodyear to supply intelligent tires to fleets in Europe
    • Starting young: Rubber Division targets high schools to fill talent gap
      Column: Lessons from Best Places to Work
      New Products: LSR 3D printing technology spotlighted at K Show
      Rubber parts makers invest in Central, Eastern Europe
    • Starting young: Rubber Division targets high schools to fill talent gap
      Kent Elastomer promotes two
      Corrie MacColl details landmark collaboration in Cameroon
      Natural rubber producers signal decline in production
  • Multimedia
    • Videos
    • Photo Galleries
  • Directory
  • Resources
    • Classifieds & Mold Mart
    • Data Store
    • Digital Issue
    • White Papers
  • Events
    • RPN Conferences
    • RPN Live
    • Events Calendar
    • Submit an Event
    • Webinars
    • Past Events
  • Advertise
MENU
Breadcrumb
  1. Home
  2. News
May 30, 2017 02:00 AM

U.S. vehicle sales expected to rebound in May

Nick Bunkley
Automotive News
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    Forecasts released May 25 by LMC, Kelley Blue Book and Edmunds project vehicle sales-volume increases of no more than 0.5 percent.

    DETROIT—U.S. new-vehicle sales are expected to rise very slightly in May from a year ago, narrowly snapping the industry's streak of four consecutive monthly declines. But one forecaster is cutting its outlook for the year after the spring selling season has come in weaker than anticipated.

    LMC Automotive said it now expects 2017 sales of 17.2 million, 2 percent fewer than the record 17.55 million sold last year.

    The annualized selling rate is projected to be less than 17 million for a third consecutive month, more evidence that the market has passed its peak. That would mean the industry will already have had as many sub-17 million months in 2017 as it did in each of the past two full years.

    Forecasts released May 25 by LMC, Kelley Blue Book and Edmunds project sales-volume increases of no more than 0.5 percent. That's in spite of the month having one more selling day than May 2016. Many auto makers are counting on showroom traffic over the long Memorial Day weekend to put May into positive territory.

    "Generous incentives are keeping traffic flowing to dealer lots, but a lot is riding on Memorial Day sales for auto makers to keep momentum strong through the crucial summer selling months," Jessica Caldwell, Edmunds' executive director of industry analysis, said in a statement. "As long as high inventories continue to drive attractive deals and the economy remains strong, consumers will be in a great position to take advantage of a buyers' market this summer."

    Incentive spending averaged $3,583 per vehicle in the first 11 days of May, which would be a $241 increase from a year ago and a record for the month, according to J.D. Power, which provides data for LMC's forecast. J.D. Power said May would likely mark the 10th time in the past 11 months in which incentives amounted to at least 10 percent of sticker prices.

    "While consumers will see substantial discounts this Memorial Day weekend, they are not expected to overcome the slowing demand in auto sales," Deirdre Borrego, J.D. Power's senior vice president of automotive data and analytics, said in a statement.

    "Continued elevated incentives reflect the challenges of balancing record levels of inventory and are likely to remain elevated unless production is adjusted to meet consumer demand."

    The next four days will be crucial for dealerships that are in danger of missing their targets for the month. Last year, the Friday through Monday of Memorial Day weekend accounted for more than 20 percent of the month's retail volume, J.D. Power said.

    Auto makers are scheduled to report May sales on Thursday, June 1. Through April, U.S. sales were 2.4 percent short of last year's pace, endangering a streak of annual growth that has stretched for seven years.

    Retail sales are expected to be 1.2 percent higher in May, J.D. Power said, while fleet deliveries are estimated to fall 1.8 percent.

    KBB analyst Tim Fleming said declining residual values are contributing to slowing sales by making subvented lease deals less appealing. He added that in recent months, leasing appears to be reaching its peak.

    General Motors is expected to gain the most market share in May, while Fiat Chrysler Automobiles and Hyundai-Kia are projected to lose share, according to KBB and Edmunds. The estimates for other auto makers are mixed, though none is expected to gain or lose more than 0.3 percentage points of share.

    Letter
    to the
    Editor

    Rubber & Plastics News wants to hear from its readers. If you want to express your opinion on a story or issue, email your letter to Editor Bruce Meyer at [email protected].

    SIGN UP FOR FREE NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please select at least one newsletter to subscribe.

    Get our newsletters

    Staying current is easy with Rubber & Plastics News delivered straight to your inbox, free of charge.

    Subscribe Today

    Subscribe to Rubber & Plastics News to get the best coverage and leading insights in the industry.

    SUBSCRIBE
    Connect with Us
    • LinkedIn
    • Facebook
    • Twitter

    MISSION

    To serve companies in the global rubber product industry by delivering news, industry insights, opinions and technical information.

    web
    Contact Us

    2291 Riverfront Pkwy, Suite 1000
    Cuyahoga Falls,
    OH 44221

    Customer Service:
    877-320-1726

    Resources
    • About Us
    • Digital Edition
    • Contact the Staff
    • Advertise
    • Order Reprints
    • Privacy Policy
    • Terms of Service
    • Ad Choices Ad Choices
    • Sitemap
    Partner Sites
    • Tire Business
    • European Rubber Journal
    • Plastics News
    • Plastics News Europe
    • Plastics News China
    • Plastics & Rubber World
    • LSR World
    • Urethanes Technology
    • Automotive News
    • Autoweek
    • Crain Brands
    Copyright © 1996-2019. Crain Communications, Inc. All Rights Reserved.
    • News
      • International Elastomer Show
      • Automotive
      • Tire
      • Non-Tire
      • Suppliers
      • Executive Action
      • Government/Legal
      • ITEC
      • Opinion
      • Technical Notebooks
      • HEXPOL Sponsored Content
    • Blogs
      • Products
      • Wacky World of Rubber
    • Newsletters
      • Rubber in Automotive
      • Silicone News
      • Latex News
      • Sign Up for Newsletters
    • Multimedia
      • Videos
      • Photo Galleries
    • Directory
    • Resources
      • Classifieds & Mold Mart
      • Data Store
      • Digital Issue
      • White Papers
    • Events
      • RPN Conferences
      • RPN Live
      • Events Calendar
      • Submit an Event
      • Webinars
      • Past Events
    • Advertise