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Down Times: Takeaways from Jul 2017 US Auto Sales

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After dual back-to-back years of record automobile sales, automakers are strictly flatlining. July’s 1.4 million in sum sales was down 7 percent from 2016, as many automakers fell brief of final year’s peppery pace. Now that we’re 7 months into a year, a attention is on gait to strech 16.7 million sales by Dec 31, as compared to 17.8 million during this same time in 2016. After poring by information from WardsAuto.com and Automotive News, we’ve unclosed many dim spots. But these are still large numbers that usually 5 years ago would have seemed impossible.

Winners and Losers

2018 Subaru Crosstrek

Last month, Subaru bucked all melancholy with a 7 percent boost in year-over-year sales (55,703); Ford Motor Company was down 8 percent (195,158). The usually other brands to post monthly year-over-year gains were Acura, adult 4 percent (14,177), Audi (18,824, 3 percent), Mitsubishi (8025 sales, 2 percent), Porsche (3901, adult 1 percent), Lexus (28,902, adult 4 percent), and Toyota (193,148, adult 7 percent). That excludes Alfa Romeo, that usually introduced dual new models (see below).

Losses mounted during Hyundai (54,063, down 28 percent including Genesis), General Motors (225,947, down 15 percent), and Fiat Chrysler (160,223, down 11 percent). Even BMW (26,363, down 14 percent, including Mini and incompatible Rolls-Royce) and Daimler (28,857, down 11 percent, including Mercedes-Benz and Smart) couldn’t equal their past totals. Tesla, yet it doesn’t recover monthly sales, was down an estimated 24 percent (3265). But totaling a year’s sales by July, 6 automakers are using forward of 2016: Jaguar Land Rover (65,585, adult 15 percent), Mitsubishi (62,601, adult 5 percent), Nissan (947,983, adult 2 percent), Subaru (360,513, adult 9 percent), Tesla (23,631, adult 14 percent), and Volkswagen (341,513, adult 6 percent, including Audi and Porsche).

RAV4 and Rogue: Coming for that #1 Spot

roguerav4

Forget about Camry and Accord. In 2017, a conflict for a best-selling non-pickup in a United States is being fought by a Toyota RAV4 and a Nissan Rogue. The Nissan has confirmed a lead by July, though Toyota managed to pierce a whopping 41,804 RAV4s this past month (Nissan sole 32,425 Rogues), squeezing that lead to usually around 2000 units. Nissan does have an ace adult a sleeve in a form of a smaller Rogue Sport crossover, a sales of that are counted underneath a incomparable Rogue umbrella. Nissan refuses to mangle out sales of a dual models, though a association orator pronounced that sales of a Rogue Sport, that initial strike dealerships in June, are usually now ramping up, and it won’t be entirely stocked until about September. That competence be usually adequate to assistance Nissan hang it to Toyota by year’s end.

No matter what happens in this fight, it seems a certain gamble during this indicate that a Toyota Camry’s long-running strain during series one is entrance to a close, given that it lags behind both those crossovers by some-more than 15,000 units for a year to date. Both a RAV4 and a Rogue also seem staid to hit a Honda CR-V off a top-selling-SUV podium, as Honda has usually managed to pierce 219,017 units by Jul to a Rogue’s 228,114 and a RAV4’s 226,570.

Inventories Align with Demand, But Not These Cars

2017 Buick LaCrosse

Sedan sales continue to slip as business expostulate off with similar-size SUVs and crossovers. As a whole, automobile sales are down 15 percent by July, while light trucks (which includes crossovers, pickups, and blurb vans) slipped usually 2 percent. Automakers have reacted by curbing prolongation and pleat inventory, so notwithstanding a Ford Fusion’s 29 percent decrease by July, many dealers aren’t pang a bolt of cars on their lots. Through Jul 1, a Fusion’s estimated days’ supply (calculated by dividing register by a normal daily sales rate) is 77 days. The Honda Accord, during 65 days’ supply, sells many faster (Honda dealers batch about 70,000 cars contra Ford’s 54,000 cars). Subaru carries as many cars as Buick (roughly 100,000), nonetheless they sell scarcely 3 times faster.

How delayed is slow? With many cars underneath 100 days’ supply, a Buick LaCrosse and Regal register during 171 and 213 days, respectively. The Lincoln Continental has 5500 cars opposite a country, that is a 147-day supply. The Acura RLX (351), Fiat 500L (188), and Chevrolet Impala (182) also are crowding dealers’ lots. Chevy dealers should let we take a Spark. They’ve got a whopping 26,473-day supply with 11,200 cars on a lot (just 764 Spark hatches sole in July, an 82 percent decline). If you’re offered for any of these cars, negotiate a ruin out of them.

Here Come a Cash Incentives

2015 Lexus RC F

As automakers start clearing space for 2018 models, they’re assisting dealers pierce a 2017 models. In some cases, a deals by Jul 31 were lavish. Hyundai slashed thousands from scarcely each model, with adult to $6000 money behind on a 2017 Sonata, $3750 for a Santa Fe Sport, and $2000 for a Tucson. There were still 2016 Azera sedans on a lot, with offers of adult to $4500 off. Fiat Chrysler and Ford piled on money rebates, with adult to $4000 off a 2017 Cherokee and $4150 off a 2017 Fusion. The Expedition carried a limit $8000 rebate. General Motors was reduction generous, restricting most rebates to $2000 or lower. Available $1500 rebates off a top-selling Lexus RX and a renouned IS helped Lexus blemish out a 4 percent boost in year-over-year sales (GS F and RC F buyers landed $4000). Camry buyers perceived adult to $3500. There were no rebates during Honda, that has a despotic process opposite them. Instead, it offering reduce financing rates (which in Jul were as low as 0.9 percent on a Accord). BMW rained down as many as $3000 on a 2017 3-series, X5, and X6.

Your friend who bought a 2017 Rolls-Royce Ghost scored a $15,000 discount. But he still should have bought a BMW 7-series.

Alfa Romeo: A Minuscule Star Shining by FCA’s Cloudy Skies

2017 Alfa Romeo Giulia

Nearly all of FCA’s brands were down or, in a box of Ram, prosaic in July, heading to an altogether 10 percent decrease compared to Jul of final year. The usually code to boost sales was Alfa Romeo, a new Italian oppulance pretender that’s finally starting to sell a Giulia sedan in some-more poignant numbers. After offered usually 43 units of a 4C outlandish sports automobile final July, Alfa Romeo shot adult to 1225 units sole this past month, imprinting a 2749 percent increase. Despite that eye-popping number, Alfa Romeo is contributing a diminutive volume to a company’s altogether sales, with a 4944 units sole so distant in 2017 creation adult 0.4 percent of FCA’s total.

Article source: http://blog.caranddriver.com/down-times-takeaways-from-july-2017-u-s-auto-sales/

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