Auto Accessories
U.S. auto makers are expected to report big declines in August domestic sales despite stepped-up incentives, according to research firm J.D. Power & Associates, though industrywide sales are expected to improve slightly from July's moribund rate.
Getty Images
Ford trucks in a dealership's storage lot in Chicago. U.S. auto makers are expected to report big declines in August domestic sales, according to J.D. Power & Associates.
The research firm still expects sales in the closing days of the month to improve because of General Motors Corp.'s 100th anniversary sales event, which offers "employee pricing" on most vehicles and cash rebates on selected light trucks.
The J.D. Power report, based on sales through Aug. 17, estimates sales for the month will come in at around 1.21 million vehicles, or 13.4 million vehicles on a seasonally adjusted annual rate. That is down from the August 2007 seasonally adjusted rate of 16.2 million vehicles, but up 6.3% from July.
"Both cash rebates and APR programs continue to rise from year-ago levels, as auto makers struggle with weakening light-truck sales," said J.D. Power. The average time a vehicle sat on the lot during the first 14 selling days of the month rose 14% from a year ago, it said, "adding pressure to increase incentive programs."
All major manufacturers had year-to-year retail-sales declines through the first 14 days of the month, although Nissan Motor Co.'s decline was modest. "That general pattern is expected to hold through the remainder of the month, with only GM by the end of the month expected to show a significant improvement over its month-to-date performance as its incentive program takes effect," J.D. Power said. Only Nissan is expected to finish the month with higher sales -- up 1.5%. Declines of 24% to 30% are forecast for GM, Ford Motor Co. and Chrysler LLC, while Toyota Motor Corp. is projected to have a 13% decline.
"With the month now half over, the pattern of very weak sales that has persisted for at least the last several months is clearly continuing into August," said J.D. Power Chief Economist Bob Schnorbus. "However, with auto makers getting near the end of one model year and getting ready to start the next, sales are beginning to show some signs of improving over July's dismal sales performance."
Car Accessories
U.S. auto makers are expected to report big declines in August domestic sales despite stepped-up incentives, according to research firm J.D. Power & Associates, though industrywide sales are expected to improve slightly from July's moribund rate.
Getty Images
Ford trucks in a dealership's storage lot in Chicago. U.S. auto makers are expected to report big declines in August domestic sales, according to J.D. Power & Associates.
The research firm still expects sales in the closing days of the month to improve because of General Motors Corp.'s 100th anniversary sales event, which offers "employee pricing" on most vehicles and cash rebates on selected light trucks.The J.D. Power report, based on sales through Aug. 17, estimates sales for the month will come in at around 1.21 million vehicles, or 13.4 million vehicles on a seasonally adjusted annual rate. That is down from the August 2007 seasonally adjusted rate of 16.2 million vehicles, but up 6.3% from July.
"Both cash rebates and APR programs continue to rise from year-ago levels, as auto makers struggle with weakening light-truck sales," said J.D. Power. The average time a vehicle sat on the lot during the first 14 selling days of the month rose 14% from a year ago, it said, "adding pressure to increase incentive programs."
All major manufacturers had year-to-year retail-sales declines through the first 14 days of the month, although Nissan Motor Co.'s decline was modest. "That general pattern is expected to hold through the remainder of the month, with only GM by the end of the month expected to show a significant improvement over its month-to-date performance as its incentive program takes effect," J.D. Power said. Only Nissan is expected to finish the month with higher sales -- up 1.5%. Declines of 24% to 30% are forecast for GM, Ford Motor Co. and Chrysler LLC, while Toyota Motor Corp. is projected to have a 13% decline.
"With the month now half over, the pattern of very weak sales that has persisted for at least the last several months is clearly continuing into August," said J.D. Power Chief Economist Bob Schnorbus. "However, with auto makers getting near the end of one model year and getting ready to start the next, sales are beginning to show some signs of improving over July's dismal sales performance."
Car Accessories
