These Massive Shifts Are Killing The Auto Industry’s seven Years Of Growth

Slumping monthly sales from automakers like Ford Motor (F), General Motors (GM) and Fiat Chrysler (FCAU) reflect a massive shift in consumer preference from sedans to crossovers, which has left old stockpiles languishing on dealer lots, an Edmunds analyst said.

And after almost a decade at ultralow levels, rising interest rates are a further haul on sales. The average interest rate for fresh car loans rose above 5% for the 2nd month in a row in April, which has not happened since early 2010, according to the car shopping and information site.

“Inventory buildup is a top concern of automakers and all eyes are on whether cuts in production are enough to offset expected dips in sales,” said Jessica Caldwell, executive director of industry analysis at Edmunds, in an email.

Industrywide, U.S. sales came in at an annual rate of 16.88 million vehicles, according to Autodata, below views for about 17.1 million. It’s the 2nd straight month of sub-17 million after March’s 16.Five million and more evidence that domestic request for cars and trucks is wilting after seven years of growth.

Toyota Motor (TM), Honda Motor (HMC) Nissan (NSANY) also spotted worse-than-expected drops, as the auto sales slowdown extended to a fourth consecutive month for the very first time since 2009.

Average prices for vehicles have been rising, in part due to the shift to more expensive and profitable trucks, crossover utility vehicles and SUVs amid cheap gas prices. But automakers have had to boost discounts and incentives to budge the metal, denting their profits, and April’s figures suggest that they have to take further activity to entice buyers.

Used-car pricing also has been feeble in latest months amid flagging request and a glut of off-lease vehicles hitting the market. Still, General Motors, Ford and Fiat Chrysler reported better-than-expected earnings last week and vowed to observe inventories closely.

IBD’S TAKE: Tesla is an IBD Leaderboard stock. Leaderboard is a premium service suggesting annotated charts of a select group of stocks, mostly growth companies at or near buy points .

General Motors

Estimates: GM was expected to report a Trio.7% year-over-year sales decline to 250,078 vehicles as unsold vehicles pile up.

Results: GM sales fell Five.8% vs. a year earlier to 244,406 vehicles.

Stock: GM shares sank Two.9% to 33.20 on the stock market today, tumbling back below their 200-day moving average after finding some support there.

Ford Motor

Estimates: Ford was forecast to report a Five.8% sales slide to 216,438.

Results: Overall U.S. April sales declined 7.2% compared to a year ago, with 214,695 vehicles sold. Retail sales fell Ten.5% year over year, as the fleet was vapid, truck sales fell Four.2% and cars dived 21.2%. Only SUV sales managed to tick up, rising 1.2%.

Inventories rose to eighty three days worth, up from eighty days in March but down from eighty seven a year earlier.

Stock: Shares retreated Four.4% to Ten.92, their worst levels since August 2015.

Fiat Chrysler

Estimates: Sales were expected to display a Four.5% drop to 180,519 vehicles.

Results: Sales sank 7% vs. a year earlier to 177,441 vehicles. Ram truck sales rose 5%, but Jeep sales skidded 17%.

Stock: Fiat Chrysler stock tumbled Four.3% to Ten.92, testing its 50-day line.

Honda

Estimates: Honda U.S. sales were expected to fall 6.7% to 138,813.

Results: Sales glided 7% to 138,386. Truck sales fell Two.9% tho’ Honda-brand truck sales edged up 1.2%. Total car sales slumped Ten.8%, with Honda cars off 12.6%.

Stock: Honda shares glided 0.7% to 28.89.

Toyota Motor

Estimates: Sales in America are slated to fall Four.8% to 201,031.

Results: Sales fell Four.4% to 201,926 vehicles, better than the Edmunds forecast but worse than some estimates. Toyota division sales glided Trio.5% while the luxury Lexus division slipped 11.1%.

Stock: Toyota shares rose 0.9% to 109.24.

Nissan

Estimates: Sales are expected to be about break-even, dipping just 0.1% vs. a year earlier to 123,714 cars, trucks and SUVs.

Results: U.S. sales fell 1.5% vs. a year earlier.

Tesla

Tesla does not provide monthly figures.

Shares fell 1.2% Tuesday to 318.89 and nudged lower in after-hours trade.

The stock hit an all-time high Monday, injecting a fresh buy area as it cleared a three-weeks-tight pattern with a 313.83 entry.

These Massive Shifts Are Killing The Auto Industry s seven Years Of Growth, Stock News – Stock Market Analysis

These Massive Shifts Are Killing The Auto Industry’s seven Years Of Growth

Slumping monthly sales from automakers like Ford Motor (F), General Motors (GM) and Fiat Chrysler (FCAU) reflect a massive shift in consumer preference from sedans to crossovers, which has left old stockpiles languishing on dealer lots, an Edmunds analyst said.

And after almost a decade at ultralow levels, rising interest rates are a further haul on sales. The average interest rate for fresh car loans rose above 5% for the 2nd month in a row in April, which has not happened since early 2010, according to the car shopping and information site.

“Inventory buildup is a top concern of automakers and all eyes are on whether cuts in production are enough to offset expected dips in sales,” said Jessica Caldwell, executive director of industry analysis at Edmunds, in an email.

Industrywide, U.S. sales came in at an annual rate of 16.88 million vehicles, according to Autodata, below views for about 17.1 million. It’s the 2nd straight month of sub-17 million after March’s 16.Five million and more evidence that domestic request for cars and trucks is wilting after seven years of growth.

Toyota Motor (TM), Honda Motor (HMC) Nissan (NSANY) also eyed worse-than-expected drops, as the auto sales slowdown extended to a fourth consecutive month for the very first time since 2009.

Average prices for vehicles have been rising, in part due to the shift to more expensive and profitable trucks, crossover utility vehicles and SUVs amid cheap gas prices. But automakers have had to boost discounts and incentives to budge the metal, denting their profits, and April’s figures suggest that they have to take further act to entice buyers.

Used-car pricing also has been feeble in latest months amid flagging request and a glut of off-lease vehicles hitting the market. Still, General Motors, Ford and Fiat Chrysler reported better-than-expected earnings last week and vowed to see inventories closely.

IBD’S TAKE: Tesla is an IBD Leaderboard stock. Leaderboard is a premium service suggesting annotated charts of a select group of stocks, mostly growth companies at or near buy points .

General Motors

Estimates: GM was expected to report a Three.7% year-over-year sales decline to 250,078 vehicles as unsold vehicles pile up.

Results: GM sales fell Five.8% vs. a year earlier to 244,406 vehicles.

Stock: GM shares sank Two.9% to 33.20 on the stock market today, tumbling back below their 200-day moving average after finding some support there.

Ford Motor

Estimates: Ford was forecast to report a Five.8% sales slide to 216,438.

Results: Overall U.S. April sales declined 7.2% compared to a year ago, with 214,695 vehicles sold. Retail sales fell Ten.5% year over year, as the fleet was vapid, truck sales fell Four.2% and cars dived 21.2%. Only SUV sales managed to tick up, rising 1.2%.

Inventories rose to eighty three days worth, up from eighty days in March but down from eighty seven a year earlier.

Stock: Shares retreated Four.4% to Ten.92, their worst levels since August 2015.

Fiat Chrysler

Estimates: Sales were expected to demonstrate a Four.5% drop to 180,519 vehicles.

Results: Sales sank 7% vs. a year earlier to 177,441 vehicles. Ram truck sales rose 5%, but Jeep sales skidded 17%.

Stock: Fiat Chrysler stock tumbled Four.3% to Ten.92, testing its 50-day line.

Honda

Estimates: Honda U.S. sales were expected to fall 6.7% to 138,813.

Results: Sales slipped 7% to 138,386. Truck sales fell Two.9% tho’ Honda-brand truck sales edged up 1.2%. Total car sales slumped Ten.8%, with Honda cars off 12.6%.

Stock: Honda shares slipped 0.7% to 28.89.

Toyota Motor

Estimates: Sales in America are slated to fall Four.8% to 201,031.

Results: Sales fell Four.4% to 201,926 vehicles, better than the Edmunds forecast but worse than some estimates. Toyota division sales slipped Trio.5% while the luxury Lexus division slipped 11.1%.

Stock: Toyota shares rose 0.9% to 109.24.

Nissan

Estimates: Sales are expected to be about break-even, dipping just 0.1% vs. a year earlier to 123,714 cars, trucks and SUVs.

Results: U.S. sales fell 1.5% vs. a year earlier.

Tesla

Tesla does not provide monthly figures.

Shares fell 1.2% Tuesday to 318.89 and nudged lower in after-hours trade.

The stock hit an all-time high Monday, coming in a fresh buy area as it cleared a three-weeks-tight pattern with a 313.83 entry.

These Massive Shifts Are Killing The Auto Industry s seven Years Of Growth, Stock News – Stock Market Analysis

These Massive Shifts Are Killing The Auto Industry’s seven Years Of Growth

Slumping monthly sales from automakers like Ford Motor (F), General Motors (GM) and Fiat Chrysler (FCAU) reflect a massive shift in consumer preference from sedans to crossovers, which has left old stockpiles languishing on dealer lots, an Edmunds analyst said.

And after almost a decade at ultralow levels, rising interest rates are a further haul on sales. The average interest rate for fresh car loans rose above 5% for the 2nd month in a row in April, which has not happened since early 2010, according to the car shopping and information site.

“Inventory buildup is a top concern of automakers and all eyes are on whether cuts in production are enough to offset expected dips in sales,” said Jessica Caldwell, executive director of industry analysis at Edmunds, in an email.

Industrywide, U.S. sales came in at an annual rate of 16.88 million vehicles, according to Autodata, below views for about 17.1 million. It’s the 2nd straight month of sub-17 million after March’s 16.Five million and more evidence that domestic request for cars and trucks is wilting after seven years of growth.

Toyota Motor (TM), Honda Motor (HMC) Nissan (NSANY) also witnessed worse-than-expected drops, as the auto sales slowdown extended to a fourth consecutive month for the very first time since 2009.

Average prices for vehicles have been rising, in part due to the shift to more expensive and profitable trucks, crossover utility vehicles and SUVs amid cheap gas prices. But automakers have had to boost discounts and incentives to budge the metal, denting their profits, and April’s figures suggest that they have to take further act to entice buyers.

Used-car pricing also has been powerless in latest months amid flagging request and a glut of off-lease vehicles hitting the market. Still, General Motors, Ford and Fiat Chrysler reported better-than-expected earnings last week and vowed to see inventories closely.

IBD’S TAKE: Tesla is an IBD Leaderboard stock. Leaderboard is a premium service suggesting annotated charts of a select group of stocks, mostly growth companies at or near buy points .

General Motors

Estimates: GM was expected to report a Trio.7% year-over-year sales decline to 250,078 vehicles as unsold vehicles pile up.

Results: GM sales fell Five.8% vs. a year earlier to 244,406 vehicles.

Stock: GM shares sank Two.9% to 33.20 on the stock market today, tumbling back below their 200-day moving average after finding some support there.

Ford Motor

Estimates: Ford was forecast to report a Five.8% sales slide to 216,438.

Results: Overall U.S. April sales declined 7.2% compared to a year ago, with 214,695 vehicles sold. Retail sales fell Ten.5% year over year, as the fleet was plane, truck sales fell Four.2% and cars dived 21.2%. Only SUV sales managed to tick up, rising 1.2%.

Inventories rose to eighty three days worth, up from eighty days in March but down from eighty seven a year earlier.

Stock: Shares retreated Four.4% to Ten.92, their worst levels since August 2015.

Fiat Chrysler

Estimates: Sales were expected to display a Four.5% drop to 180,519 vehicles.

Results: Sales sank 7% vs. a year earlier to 177,441 vehicles. Ram truck sales rose 5%, but Jeep sales skidded 17%.

Stock: Fiat Chrysler stock tumbled Four.3% to Ten.92, testing its 50-day line.

Honda

Estimates: Honda U.S. sales were expected to fall 6.7% to 138,813.

Results: Sales glided 7% to 138,386. Truck sales fell Two.9% tho’ Honda-brand truck sales edged up 1.2%. Total car sales slumped Ten.8%, with Honda cars off 12.6%.

Stock: Honda shares glided 0.7% to 28.89.

Toyota Motor

Estimates: Sales in America are slated to fall Four.8% to 201,031.

Results: Sales fell Four.4% to 201,926 vehicles, better than the Edmunds forecast but worse than some estimates. Toyota division sales glided Three.5% while the luxury Lexus division slipped 11.1%.

Stock: Toyota shares rose 0.9% to 109.24.

Nissan

Estimates: Sales are expected to be about break-even, dipping just 0.1% vs. a year earlier to 123,714 cars, trucks and SUVs.

Results: U.S. sales fell 1.5% vs. a year earlier.

Tesla

Tesla does not provide monthly figures.

Shares fell 1.2% Tuesday to 318.89 and nudged lower in after-hours trade.

The stock hit an all-time high Monday, coming in a fresh buy area as it cleared a three-weeks-tight pattern with a 313.83 entry.

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