Published: Wed, April 05, 2017
Tech | By Constance Martin

US March new auto sales fall short of market expectations

US March new auto sales fall short of market expectations

For now, anyway, the auto industry isn't anxious. Overall, crossovers and SUVs (from various sellers) appear to be holding strong. Auto retail sales for the Chevrolet brand slipped 11 percent, though sales of the Chevy Cruze jumped 88 percent compared to a year ago.

While the Silverado's chief competitor saw a 10 percent sales increase, Chevrolet's flagship pickup truck reported sales that "were essentially equal to a year ago", according to the release. Get this and other reports immediately when you try Morningstar Premium free for 14 days.

Fiat Chrysler reports a drop of 5 percent in overall sales in March 2017, with the Dodge sales up, Ram sales up, but a decrease of 15 percent in fleet sales. Also, insider Stefan Jacoby sold 2,540 shares of General Motors Company stock in a transaction on Monday, January 9th.

Other automakers also reported a significant increase in Canadian sales, including Nissan Motor Co Ltd 7201.T , which sold 14,523 vehicles, representing a 26.7 percent jump.

As investors felt less certain about the performance of the economy, they sold stocks in companies that do the best when the economy is growing quickly.

Automakers are approaching a "slippery slope" regarding incentives, said Jeff Schuster, an analyst at LMC Automotive.

You can see a similar breakdown at Ford with regards to how sales in total declined, but were mostly held up by crossovers with cars sales taking a huge dive.

Jeep, typically Fiat Chrysler's most profitable and valuable division, reported sales that dropped 11 percent.

If automakers can't reduce inventories, they'll have to offer even more incentives, which will reduce industry profits. Nissan is focused on boosting sales of certain sport-utility vehicles, pickup trucks and commercial vehicles, and contends its discount levels remain prudent, she said.

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Authorities told reporters they were looking to identify several other juveniles and at least one adult. Eddie Johnson as he was leaving a police station and showed him the video of the mid-March attack.

Since vehicle values could fall if demand falters, that could mean an end to sweet lease deals for consumers, she said. The auto maker's fleet sales dropped 15% in March compared with the same month a year ago, and the red-hot Jeep brand continued cooling in March following a long string of strong performances. Year-to-date, F has declined -5.17%, versus a 5.29% rise in the benchmark S&P 500 index during the same period.

"Our solid performance in 2016 underscores the substantial progress we are making in expanding our business to be an auto and a mobility company", said Mark Fields, Ford president and chief executive officer.

Stock is now moving with a positive distance from the 200 day simple moving average of approximately 3.88%, and has a poor year to date (YTD) performance of -0.92% which means the stock is constantly subtracting to its value from the previous fiscal year end price.

In the Midwest, Scarpelli said, dealers build inventory during cold-weather months in preparation for spring and summer selling seasons.

Canada reported double-digit sales growth, driven by truck sales.

Automakers also are raising incentives a bit to keep sales moving, he said.

Investors weren't so sanguine.

In morning trading, GM shares were down 3.8 percent at $34.03 and Ford was off 2.5 percent at $11.34.

Ford Motor Company (NYSE:F) released its 2016 annual report, which details the progress Ford made previous year in its continued expansion to be an auto and mobility company. Tesla's market capitalisation rose to 48.7 billion dollars, greater than Ford's. GM is valued at $51.19 billion.

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