The US Car Market is Expected to Weaken This Year
In the United States, vehicle sales in 2018 were unexpectedly stable, which was better than market expectations. However, this year, the car market is expected to weaken with the increase in car loan interest rates, the reduction of preferential leasing programs, and the booming cycle of the automobile market.
In the United States, the overall car sales in 2018 was about 17.3 million units, an increase of less than 1% year-on-year, but it still recorded a record of more than 17 million units sold for four consecutive years, highlighting the resilience of the automobile manufacturing industry.
However, most of the auto executives are still cautious about the prospects of the US auto market. The main reason is that the car loan interest rate will continue to rise, and the discounted rental concessions offered by the car manufacturers will be reduced, making it more difficult for the public to afford the expensive price of the new car. At the same time, the used car market has more attractive options, and both squeeze new car sales.
General Motors (GM) announced on the 3rd that sales in the fourth quarter of last year fell 2.7% to 785,000 units, while Ford Motor said on the same day that sales in December fell 8.8% to 219,000 units. At the same time, it will follow the general practice, from each The monthly sales data was changed to be announced quarterly.
Toyota‘s December sales were unchanged from last month, maintaining 220,000 units. The Fiat Chrysler Automobiles (FCA) and Nissan Motors delivered outstanding transcripts in December, with sales rising 14% and 7.6% respectively, selling 196,500 and 148,000 vehicles.
The Wall Street Journal reported that the majority of automakers’ sales for the whole year last year were the same as the previous year. The larger change was that the FCA increased by 9% and the Nissan fell by 6%.
Analysts are still generally bearish on the performance of the US auto market in 2019, and the Automakers Association estimates that sales will drop to 16.8 million units this year. Some auto executives said that even if the economy is strong, they are already preparing for the shrinking of the auto market based on the nature of the auto industry’s economic cycle. For example, GM announced last month that it will close several North American automakers and lay off up to 14,000 people. It wants to rectify the company, cut down on poorly sold cars and reduce costs, so that sales can continue even if they return to the low point of a decade ago. Profit.
But GM is still optimistic about this year’s US auto market, sales vice president Kurt McNeil said that due to the strong economy and the company is about to launch a revised version of pickup trucks and SUVs and other popular models.
Analysts also pointed out that given the low unemployment rate and strong consumer confidence, coupled with low oil prices, it is expected to continue to drive the purchase of large SUVs and pickup trucks, and the sales volume of the car market is still growing steadily.