Sunday, 10 December, 2017

Black Friday deals likely boosted U.S. auto sales

The 2017 Chrysler Pacifica The 2017 Chrysler Pacifica
Theresa Hayes | 03 December, 2017, 16:07

Ford's U.S. November 2017 sales increased 6.7% versus November 2016, with retail performance increasing 1.3% year-over-year.

Edmunds is projecting that total sales will come in at 17.2 million for 2017, down from 17.55 million a year ago. General Motors (NYSE:GM) said November U.S. vehicle deliveries fell 2.9% from a year ago while Ford's (NYSE:F) unit sales increased 6.7% in November.

Some analysts initially predicted November sales would drop as post-hurricane sales slowed in Texas and Florida. The numbers indicate dealership traffic remained on par with the same month previous year, as a spate of Black Friday deals fueled interest.

— Subaru brand sales rose 1 percent to 51,721 vehicles. This represents an increase of 1,141% compared to the typical volume of 1,271 call options. But sales fell for the company's Ram, Jeep, Dodge and Fiat brands.

Fiat Chrysler Automobiles NV (NYSE:FCAU) opened at 10.55 on Friday. Barclays upgraded Fiat Chrysler Automobiles from an equal weight rating to an overweight rating and decreased their price target for the stock from $15.53 to $10.00 in a research report on Wednesday, September 6th. Auto buying site KBB.com said automotive credit applications rose 42 percent on Black Friday compared to other Fridays in November.

"The need to clear out record inventories of prior model-year vehicles continues to keep incentive spending aggressive in November", said Thomas King, an analyst at J.D. Power. The trend will likely continue in 2018, when US sales are expected to drop and automakers will be keen to hold on to their market share. "From a discipline standpoint, even though it's moved up, transaction prices moved up along with it."Industrywide, November sales ran at an annualised rate of almost 17.5 million units, outpacing analyst estimates, preliminary data from researcher Autodata show".

Sales were buoyed by strong US consumer confidence, which was at its highest level since November 2000, according to the Conference Board.

Toyota sales fell 3% even though the revamped Camry sedan and the RAV4 small SUV posted record November numbers.

At FCA, retail sales rose two percent, but as with GM, its overall results were hit by a decline in sales to rental companies. Genesis luxury sales rose slightly. Ford, meanwhile, saw sales increase 7% with 210,205 vehicles sold. Sales of the CR-V SUV jumped 25 percent. The automakers have had more leeway to offer big discounts and cheap loans because buyers have been snapping up more sport utility vehicles and trucks, which usually sell for more than the passenger cars that consumers are snubbing."November and December over the last few years have become a very big merchandising window for the industry", Mark LaNeve, Ford's U.S. sales chief, told analysts and reporters on a conference call Friday. Luxury Lincoln sales fell 5.5 percent. Finally, Morgan Stanley reissued an "overweight" rating and set a $14.00 price target on shares of Fiat Chrysler Automobiles in a research report on Monday, July 17th.

Industrywide, November sales ran at an annualized rate of almost 17.5 million units, outpacing analyst estimates, preliminary data from researcher Autodata Corp. show.