A DECADE OF LOW RATES GOES INTO REVERSE GEAR FOR THE AUTO SECTOR

Here are the low lights from across the Auto industry:

  • Ford posted an 11% drop, missing analyst estimates of 9.1%.
    • The F-Series pickup line ended a 16-month streak of sales gains.
    • Mustang sales were down 1.3%.
  • Nissan posted a 12.2% drop in September.
    • Nissan and Infiniti brand car sales fell by 36%, including a 28% drop for the Altima sedan as the company prepared to start selling an all-new version this week.
  • Toyota sales were down 10.4%, far below estimates of 6.7% for the month.
    • Combined sales for Toyota and Lexus brand cars fell 25.3%.
  • Fiat posted the only true "beat", as sales rose 15% versus analyst estimates of 8%.
    • However, the Chrysler brand fell 7% to 14,683 vehicles and
    • The Fiat brand fell 46% to 1,185 vehicles. The deficit was made up on Jeep sales, which were up 14%, as well as sales of Ram pickups and minivans.
  • Volkswagen of America car sales were down 4.8%
  • GM third quarter total sales were down 11%. The company stopped reporting monthly numbers earlier this year, with many suspecting that weakness in the production pipeline is responsible; they were right.

With

  • Incentives and
  • Low rates now both fading out fast,

.. the automobile industry could be in for a grim finish to 2018 and an even worse 2019.

Perhaps the only question left at that point will be how long it'll take the government to bail it all back out.

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