Brocker.Org: January auto product sales declined — but which is actually excellent news


Vetatur Fumare/Flickr

The automakers claimed January product sales on Wednesday, and most
notched declines in contrast with the same month previous year.

But that won’t signify the US market place is dealing with the initial
indications that a multiyear, document-setting increase is ending.

Relatively, the increase carries on. “January product sales fell one.eight p.c to
one.fourteen million motor vehicles, or a seasonally modified annualized amount
of 17.sixty one million motor vehicles, down from 17.nine million motor vehicles a year
before, in accordance to Autodata,” Reuters

“The annualized amount was approximately in line with the forecast of
17.fifty five million in a poll of forty economists by Thomson Reuters.”

That predicted annualized amount would have matched 2016’s
document-setting effectiveness. But it did not match it — it defeat it.

Two optimistic factors contributed to January product sales, which are
typically weak in contrast to other months.

First, pickups and SUVs are selling a great deal greater than passenger
autos. This means that even if product sales decrease year-around-year,
gains can be managed. Pickups and SUVs simply make more
funds for the automakers.

2nd, automakers are finding disciplined about so-called “fleet
product sales” — mainly travellers autos marketed to rental companies,
governments, and companies. Fleet product sales can juice the product sales
figures, but retail product sales to shoppers are a great deal more worthwhile.

So there you have it. The auto product sales increase in the US carries on,
and automaker profitability seems to be as if it will reward for the
foreseeable potential. The downturn, of program, will arrive. But it
may not arrive in 2017.

US Auto Sales Graphic