Automakers are reporting their sales numbers for November throughout Thursday.
Most companies have reported sales growth that was better than expected. However, a 14% year-on-year plunge at Fiat Chrysler could weigh on the overall rate for the month, according to Bespoke Investment Group.
Here are the latest results:
- Nissan: 7.5% (4.6% expected)
- Ford: 5.1% (0.5% expected)
- Toyota: 4.3% (3.4% expected)
- GM: 10.2% (9.1% expected)
- Fiat Chrysler: -14% (-9% expected)
- Honda: 6.5% (8.4% expected)
- Volkswagen of America: 24.2%
Economists estimate that total vehicle sales rose at a seasonally adjusted annual rate of 17.7 million, according to Bloomberg. That would be down from the 17.9 million pace recorded in October, but still relatively strong.
Sales this year were not expected to keep up with the record pace of 2015, but they were supported by automakers’ use of incentives and continued low interest rates.
This greater use of incentives and price discounts to attract buyers is not sustainable, said Michael Gapen, a Barclays analyst, in a note. They have eroded the quality of sales and could hurt carmakers’ earnings.
In the coming months, more attention may be paid to the impact of rising interest rates on auto lending and demand. There’s not likely to be a dramatic effect, however — at least not immediately.
“We see reasons to believe that auto financing will become more restrictive over time,” Gapen said last month. “Commercial banks are now tightening standards on auto loans and readings on household debt service ratios suggest that delinquency rates have likely bottomed.”
This post will be updated with the latest numbers as they arrive.
SEE ALSO:6 million Americans have stopped paying their car loans, and it’s becoming a ‘significant concern’
NOW WATCH: Watch the Air Force drop 8 armored Humvees out of a plane from 5,000 feet
Leave a Reply
Leave a Reply
This site uses Akismet to reduce spam. Learn how your comment data is processed.
