Published: Thu, August 03, 2017
Markets | By Erika Turner

Explorer sales rose 12.9 percent in July

Explorer sales rose 12.9 percent in July

Analysts expect auto sales to hit a new record high of 2 million units in 2017, according to analysts at Scotia Bank.

Several of the big automakers, including Ford, GM, Fiat Chrysler Automobiles, Nissan Motor Co. and Hyundai Motor Co. announced they sharply reduced sales of rental cars during July, and portrayed those choices as placing profit in front of sales volume.

"Auto sales have peaked, they peaked nearly six months ago, and they probably don't drive the consumption that much anymore", Krishna Memani, chief investment officer at Oppenheimerfunds Inc., said on Bloomberg Television.

One bright spot for all the automakers: auto shopping site Edmunds.com reports the average price paid for a new vehicle in July rose two percent to $34,558. Ford said total vehicle sales for last month tumbled 7.5% from a year, as a 19.4% plunge in auto sales and a 7.1% slide in truck sales offset a 2.2% rise in SUV sales.

In a more troubling sign for Detroit, combined sales of large pickups fell 4 percent, and sales of large sport utility vehicles declined by 20 percent.

Tesla's model 3 electric auto will set you back $42000
The company reported an earnings miss in the past two quarters, but before that it was a yo-yo pattern of hits and misses. But Musk says Tesla worked hard to make the Model 3 simpler and cheaper to make than Tesla's previous vehicles.

Shares of most major automakers have trailed benchmark US stock indexes this year. New vehicle sales hit a record 17.55 million a year ago.

The Ford brand declined 7.7 percent in July, and the Lincoln brand fell 2.5 percent. Fiat Chrysler ended production of many models it at one time sold to rental fleets.

GM gained little ground in its effort to reduce inventories of unsold vehicles.

The company said fleet sales overall accounted for about 10.5 percent of total USA sales for July. "A strong real estate market, especially with regard to new home construction, in conjunction with low fuel prices, generous incentives and improved product offerings will help to keep truck sales strong".

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