Skip to main content
Sister Publication Links
  • European Rubber Journal
  • Plastics News
web
Subscribe
  • Login
  • Register
  • Subscribe
  • News
    • ITEC
    • Automotive
    • Tire
    • Non-Tire
    • Suppliers
    • Silicone
    • Latex
    • Coronavirus
    • Executive Action
    • Government/Legal
    • Opinion
    • Technical Notebooks
    • International Elastomer Show
    • Women in Tire & Rubber
    • HEXPOL Sponsored Content
    • Goodyear recognized by Lockheed Martin as 'elite supplier'
      EV tire advancements to help secure future
      Lambillotte: Only question on AVs is timing
      CAR official says EV future brighter than autonomous
    • Biden signs executive order, prioritizes U.S.-made EVs, PPE
      Conti starts production of ‘HL' load index tires for select OE customers
      ITC votes to keep duties in place on China P/LT tire imports
      Hankook gains OE fitments on Audi RS Q8
    • Conti starts production of ‘HL' load index tires for select OE customers
      ITC votes to keep duties in place on China P/LT tire imports
      Russia's Kama Tyres expanding truck, ag tire capacities
      Hankook gains OE fitments on Audi RS Q8
    • DuPont investing in Liveo line of silicone products
      A change at the top for Stockwell Elastomerics
      Flexan receives FDA registration for Suzhou facility
      63rd Polyurethanes Technical Conference set for fall
    • Phillips Carbon Black expanding capacity at site in India
      DuPont investing in Liveo line of silicone products
      New systems solutions advance the sustainability of automotive weatherseals
      Arburg: 2021 Technology Days in June will run for 6 days
    • DuPont investing in Liveo line of silicone products
      A change at the top for Stockwell Elastomerics
      Flexan receives FDA registration for Suzhou facility
      Coi Rubber adding on to plant in China
    • WCCO task force navigates pandemic, expands communications
      ASTM cancels April meetings as COVID-19 continues impact
      Paycheck Protection Program funding reopens Jan. 15
      Detroit Auto Show canceled; alternative event being planned for September
    • A change at the top for Stockwell Elastomerics
      Angelos Papadimitriou to leave position with Pirelli after six months on job
      Tero Peltomaki named Cimcorp CEO
      Synthomer CEO MacLean to step down by early 2022
    • Biden signs executive order, prioritizes U.S.-made EVs, PPE
      ITC votes to keep duties in place on China P/LT tire imports
      Hwa Fong joins Taiwan tire makers' bid for alternative to import duties
      NLRB certifies USW as bargaining unit for Kumho Tire plant in Georgia
    • Editorial: Against a backdrop of turmoil, M&A deals give glimpse of normalcy
      Column: Pandemic looms over everything in life, business in 2020
      Column: Lessons from the 2020 Best Places to Work
      Editorial: Silicone hit hard by pandemic, expected to bounce back
    • Advancements in synchronous drive belt design for industrial and consumer markets
      Effects of multiple repurposed materials for reinforcements of standard rubber compounds
      Impact of peroxide blends on the cure rate and aged properties in HNBR
      Techniques to detect long chain branching in polymers
    • Rubber Division seeks abstracts for 200th Technical Meeting
      WORD panelists say evolution, authenticity keys to success
      IEC keynote: Communication key to logistics
      IEC speaker: Specialized elastomers may reduce spread of life-threatening pathogens
    • WORD panelists say evolution, authenticity keys to success
      New video celebrates women in rubber industry
      ITEC panelists say women can thrive in tire industry
      Rubber Division planning second Women of Rubber event
    • Sponsored By HEXPOL Compounding
      Faster Access to Your Polymer Compounding Experts Around the World
      Sponsored By HEXPOL Compounding
      Take a walk thru a HEXPOL Lab
      Sponsored By HEXPOL Compounding
      HEXPOL offers a unique selection of High Performance Elastomers to match your application requirements
      Sponsored By HEXPOL Compounding
      It’s what you can’t see that makes the Difference at HEXPOL
  • Blogs
    • Products
    • Wacky World of Rubber
    • New Products: Nova thinks outside the box with sealing tech
      New Products: MonTech introduces 1,500 kN lab press
      New products: 3M introduces new durable, pliable medical adhesive
      New Products: Lanxess launches energy-efficient PU elastomer
    • Wacky World of Rubber: How Trelleborg, teens sealed a spot in the world record book
      Wacky World of Rubber: Of chicken and feet, but not chicken feet
      Wacky World of Rubber: Time to go mattress shopping
      Wacky World of Rubber: Because nothing says football like 'frunk' shrimp
  • Newsletters
    • Rubber in Automotive
    • Silicone News
    • Latex News
    • Sign Up for Newsletters
    • Biden signs executive order, prioritizes U.S.-made EVs, PPE
      Conti starts production of ‘HL' load index tires for select OE customers
      ITC votes to keep duties in place on China P/LT tire imports
      Hankook gains OE fitments on Audi RS Q8
    • DuPont investing in Liveo line of silicone products
      A change at the top for Stockwell Elastomerics
      Flexan receives FDA registration for Suzhou facility
      Coi Rubber adding on to plant in China
    • Bridgestone bets on guayule as alternative natural rubber source
      Synthomer CEO MacLean to step down by early 2022
      Jack Murphy joins Akron Dispersions
      Synthomer optimistic, raises earnings forecast
  • Multimedia
    • Videos
    • Photo Galleries
  • Directory
  • Resources
    • Classifieds & Mold Mart
    • Sponsored Content
    • White Papers
    • Sponsored By HB Chemical
      The Company Behind the Inventory
      Sponsored By French Oil Mill Machinery
      Process Improvement, Cost Reduction with Custom Press Systems
    • Sponsored By Uncountable Inc.
      Cooper Standard deploys lab informatics platform to synchronize R&D
      Sponsored By Elkem
      LSR Select™: A solution to improve your financial impact in molding applications
      Sponsored By HEXPOL Compounding
      Peroxide Cureable Silicone Injection Molding
      Sponsored By HEXPOL Compounding
      Understanding and Selecting Performance Additives for Rubber Compounding
  • Data
  • Events
    • RPN Events
    • RPN Livestreams/Webinars
    • Industry Events
    • Past Events
    • ITEC Library
    • International Silicone Conference Library
    • 2021 Healthcare Elastomers Virtual Edition
      2021 Rubber in Automotive Virtual Edition
      2022 ITEC
  • Advertise
  • DIGITAL EDITION
MENU
Breadcrumb
  1. Home
  2. News
October 03, 2018 02:00 AM

Auto sales fall as second-half slowdown takes root

David Phillips
Automotive News
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    David Phillips, Automotive News
    Ford's U.S. car sales have now dropped 17 percent this year as the company prepares to discontinue most sedans in North America.

    Major auto makers, with the exception of Fiat Chrysler, posted lower U.S. sales last month behind the ongoing slump in the car market and softer retail demand, even amid elevated incentive levels, signaling an anticipated second-half slowdown continued in September.

    A year ago, industry sales also were boosted by vehicle-replacement demand following Hurricane Harvey.

    With every auto maker except for Audi reporting, U.S. light-vehicle deliveries last month fell 5.6 percent, slightly better than analysts' forecast for a 7 percent decline compared to September 2017, when sales spiked as consumers replaced vehicles destroyed by Harvey.

    Yet by another measure, the September numbers will look stronger. The seasonally adjusted, annualized rate of sales was expected to rise above 17 million for the seventh time this year after two months below that level. The forecast is based on nine analysts polled by Bloomberg News.

    A final SAAR won't be calculated until Audi reports September results, which are expected later Tuesday or early Wednesday.

    The September 2017 SAAR was 18.2 million, the strongest month of the year.

    U.S. sales rose 1.3 percent through August after a better-than-expected first half, driven in part by a boost from U.S. tax reform. The SAAR declines in July and August were taken as a sign that a second-half slowdown predicted by analysts is unfolding.

    "The U.S. economy and auto industry remain strong," said General Motors Chief Economist Elaine Buckberg. "A new U.S.-Mexico-Canada trade agreement will reduce uncertainty for the auto industry and all three countries. We believe 2018 will be the fourth year in a row with total industry sales above 17 million units."

    Company by company

    FCA U.S. sales rose 15 percent last month to 199,819—enough to outsell Ford Motor Co. for the first time since 2015—behind stronger results at the Jeep and Ram brands. FCA said deliveries jumped 14 percent at Jeep, 9 percent at Ram and 41 percent at Dodge. Volume dropped 7 percent at the Chrysler brand and slumped 46 percent at Fiat.

    FCA's retail sales totaled 149,713 units, and fleet accounted for 25 percent of total volume last month.

    General Motors' sales dropped an estimated 16 percent last month, with deliveries down 18 percent at Chevrolet, 8.6 percent at GMC, 11 percent at Buick and 17 percent at Cadillac.

    GM no longer releases monthly sales results but the company said its third-quarter U.S. deliveries fell 11 percent to 694,638 cars and light trucks, with every brand off during the period. For the year, GM said its U.S. sales have dropped 1.2 percent behind declines at every brand.

    Ford Motor's U.S. sales fell 11 percent behind the ongoing industrywide slump in car demand and lower light-truck volumes. Deliveries fell 11 percent at the Ford division and 7.2 percent at Lincoln, the company said.

    Ford's pickup/van demand slipped 9.9 percent and SUV/crossover sales dropped 2.7 percent, while September car deliveries skidded 26 percent. Ford Motor's U.S. car sales have now dropped 17 percent this year as the company prepares to discontinue most sedans under the Ford brand in North America.

    Retail volume declined 13 percent and fleet shipments dropped 6.7 percent last month, Ford said.

    Japan 3

    At Toyota Motor Corp., volume dropped 10 percent last month, with car sales plunging 25 percent and light-truck demand dipping 0.3 percent. Toyota division sales slipped 11 percent and Lexus was off 6.1 percent.

    Nissan Motor Co.'s September sales fell 12 percent, with car deliveries plunging 36 percent and light-truck volume rising 6.6 percent. Sales fell 13 percent at the Nissan brand and 1.5 percent at Infiniti.

    Honda Motor Co. reported sales of 132,668, a decline of 7 percent, reflecting a 20 percent drop in car deliveries. Volume slipped 8.2 percent at Honda but rose 4.4 percent at Acura.

    Subaru extended its streak of year-over-year monthly gains to 82 with a 3.5 percent increase in September sales.

    September deliveries declined 1.8 percent at Kia, 17 percent at Mazda, 8.6 percent at Mitsubishi, 7.4 percent at Mini and 59 percent at Smart but increased 3 percent at Hyundai.

    The Volkswagen brand snapped an eight-month streak of gains, with volume off 4.8 percent in September. Even with strong crossover sales, the company said September results were negatively impacted by delays to certify emissions on some 2019 models, limiting inventories.

    Among other luxury brands, volume rose 1.3 percent at BMW, 10 percent at Volvo, 0.9 percent at Porsche and 8.7 percent at Land Rover. Sales skidded 76 percent at Genesis and 38 percent at Jaguar.

    Industry outlook

    While the U.S. economy and employment continue to grow, and consumer confidence remains high, rising interest rates and elevated gasoline prices are expected to dampen consumer demand. Increasing stockpiles of late-model used vehicles and climbing new-vehicle prices are also putting downward pressure on new car and light-truck sales.

    "There's no question the Fed's actions this year are impacting car buyers," Jonathan Smoke, chief economist for Cox Automotive, said after the Federal Reserve hiked interest rates for the third time in 2018. "It will not get better for consumers or the industry from here."

    Smoke said the Fed's seven rate increases over the last 22 months have already shifted the market from one that peaked with new-vehicle demand two years ago—17.55 million in 2016—to one that is now generating peak used-vehicle sales.

    "Clearly, the Fed isn't finished, as they have indicated an additional increase will come in December, with more expected in 2019," Smoke said.

    The Trump administration's proposals to increase tariffs on light-vehicle imports could also derail sales if enacted.

    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 NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    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
    • Privacy Request
    • Terms of Service
    • Careers
    • Ad Choices Ad Choices
    • Sitemap
    Partner Sites
    • Tire Business
    • European Rubber Journal
    • Plastics News
    • Plastics News China
    • Urethanes Technology
    • Automotive News
    • Crain Brands
    Copyright © 1996-2021. Crain Communications, Inc. All Rights Reserved.
    • News
      • ITEC
      • Automotive
      • Tire
      • Non-Tire
      • Suppliers
      • Silicone
      • Latex
      • Coronavirus
      • Executive Action
      • Government/Legal
      • Opinion
      • Technical Notebooks
      • International Elastomer Show
      • Women in Tire & Rubber
      • 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
      • Sponsored Content
      • White Papers
    • Data
    • Events
      • RPN Events
      • RPN Livestreams/Webinars
      • Industry Events
      • Past Events
      • ITEC Library
      • International Silicone Conference Library
    • Advertise
    • DIGITAL EDITION