Auto Makers Cruise to Sales Gains in March
April 01 2016 - 10:10AM
Dow Jones News
Auto makers cruised through another month of gains in U.S. sales
in March as favorable weather and a pair of extra selling days
helped drive the industry toward its highest expected monthly
volume in a decade.
Ford Motor Co. reported sales rose 7.8% in the month to 253,064.
F-series pickup sales rose 9% to their best March while Ford brand
SUVs saw their best sales for the month since 2001.
General Motors Co.'s sales for the month edged up 0.9% to
252,128 as rental deliveries fell 33%. Retail sales, meanwhile,
rose 5.9%.
Fiat Chrysler Automobiles NV posted an 8.1% rise to 213,187
vehicles sold during the month, for the Italian-U.S. auto maker's
highest sales for March in a decade. Jeep sales soared 15% for the
brand's 30th consecutive month of year-over-year gains and best
March yet. Minivans also logged record sales, with van sales of the
Dodge Grand Caravan and Chrysler Town & Country more than
doubling.
As car makers' tallies roll in Friday, March auto sales in the
U.S. are expected to total roughly 1.66 million, at a seasonally
adjusted annual rate of 17.3 million units, according to WardsAuto.
That volume represents a roughly 7% increase versus the same period
a year ago, and is attributed to two more selling days last month
compared with March 2015.
WardsAuto.com predicted March would have the highest sales by
volume of any month in the past decade at 1.7 million, and that the
daily sales rate will increase for the eighth consecutive month
from a year ago.
Good weather and the two extra selling days should help auto
makers maintain their record pace, but sales are expected to be
flat or even slightly down on a selling-day adjusted basis. RBC
Capital Markets analyst Joseph Spak predicted that inventories
decreased from February, and that investors will be looking for any
signs that auto makers are scaling back their production plans.
Regardless of any plateau for auto sales, demand continues to
benefit from low fuel prices and an improving job market. Interest
rates are also likely to remain low, as Federal Reserve Chairwoman
Janet Yellen said in a speech Tuesday in New York that the central
bank will be cautious about raising rates in light of uncertainty
in the global financial markets.
The street will be expecting auto sales to continue their
blistering pace, with continued strength in SUVs, light trucks and
crossovers. Still, Honda Motor Co.'s new Civic is also expected to
drive sales growth for the Japanese auto maker, even as car sales
continue to shrink as a portion of the overall market. Pickup
trucks and small crossovers are expected to remain among the
hottest sellers. Trucks and SUVs made up 57% of sales in February,
according to Autodata Corp.
J.D. Power and LMC Automotive, however, forecast retail sales of
light vehicles will be down slightly in March. But LMC senior vice
president of forecasting Jeff Schuscter said "the outlook for the
year remains robust" and that despite the softness in March,
year-to-date sales volume remain roughly 5% ahead of a year ago
through three months.
Kelley Blue Book estimates the average transaction price for
light vehicles rose 2% from a year ago to $33,666 in March.
Write to Anne Steele at Anne.Steele@wsj.com
(END) Dow Jones Newswires
April 01, 2016 09:55 ET (13:55 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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