U.S. auto industry slump continues - Professional Carwashing & Detailing

U.S. auto industry slump continues

NEW YORK — Automakers face the fourth straight month of sales decline, the longest since 2009.

NEW YORK — According to The New York Times, U.S. automakers reported the fourth straight month of a sales slump for new cars and light trucks.

This is the longest slump since 2009, when the industry faced bankruptcy crises, the article continued.

The top six automakers in the U.S. all stated that sales had declined compared to April 2016, and the decline exceeded analysts’ predictions in every instance, the article stated; in response, shares for Ford, Fiat Chrysler and General Motors (GM) fell.

Compared to the 1.5 million cars and trucks sold one year ago, only 1.43 million sold in April this year, the article noted, and automakers are already preparing to cut back on production counts, meaning a loss of jobs as well.

For instance, approximately 1,100 workers are being laid off this month at the GM plant in Lansing, Michigan, and three other plants are eliminating shifts, which will idle more than 3,000 addition workers.

Sales fell more than seven percent for both Ford and Fiat Chysler; GM fell 5.8 percent, Toyota slipped 3.5 percent and Nissan dropped two percent (the figures for Japanese makers exclude their luxury brands), the article noted.

While many analysts predict that sales will fall from 17.5 million in 2016 to 17.2 million in 2017, some expect the drops to be even more drastic in the coming years, the article added.

AlixPartners, a consulting firm, estimates that sales will fall to 16.6 million vehicles in 2018 and 15.2 million in 2019, forcing automakers to lower production even more, the article reported.

These declining production counts and layoffs run opposite to President Trump’s wishes to have more cars manufactured in the U.S. and import fewer from abroad, the article noted.

Furthermore, as cars stay on the lots longer, dealerships are resorting to bigger incentives to sell small and mid-sized cars especially, which are struggling in sales counts, the article stated; for example, Hyundai offered discounts of $5,000 or more on its Sonata sedan.

Finally, an increasing supply of used cars as well as falling prices on them are further impacting sales of newer cars, the article concluded.

Read the full article here.

You May Also Like

Kleen-Rite Missouri moves into new distribution center facility

COLUMBIA, Pa. — The new distribution center in Kansas City, Missouri, aims to enhance inventory and shipping efficiency for the region.

Kleen-Rite Corp.

COLUMBIA, Pa. — Kleen-Rite Corp. announced in a press release the opening of a distribution center facility at a new location in Kansas City, Missouri.

Replacing the previous distribution center, the new facility has more space to stock an expanded inventory selection and ship products faster in the region.

DRB appoints April Bertram as VP of product management

AKRON, Ohio — With over 30 years of experience in product innovation, Bertram joins DRB to shape the future of its product portfolio.

New detailing nonprofit to help underserved youth

LAGUNA HILLS, Calif. — Renowned automotive detailer Rigo Santana launched the New Generation Kids nonprofit to provide early training and career opportunities.

la-detailing-nonprofit
Splash welcomes Kathryn Rogers as chief financial officer

LITTLE ROCK, Ark. — Rogers brings extensive experience to Splash Car Wash, having worked with major firms and non-profits.

kathryn-rogers-splash
Splash Car Wash to build four new locations

LITTLE ROCK, Ark. — The Fayetteville Splash Car Wash opened in June 2024, featuring an express carwash tunnel with high-powered free vacuums.

Other Posts

Whistle Express opens Fairdale location with donation to hospital

FAIRDALE, Ky. — Celebration will include exclusive promotions, a $1 donation to Norton Children’s Hospital for every car washed and more.

Whistle Express car wash - magnolia holdings
The RipTide Car Wash acquires MILES Auto Spa

NASHVILLE — This strategic move enhances RipTide’s presence in the Southeast, particularly in the thriving Nashville market.

MILES Auto Spa logo
Lucas Oil facilities receive recertification for ISO 9001:2015

INDIANAPOLIS — Certification shows Lucas Oil’s commitment to quality proprietary solutions, regulatory compliance and customer satisfaction.

lucas-oil-recertification
Hanley Investment Group arranges sale of new Mister Car Wash

MERIDIAN, Idaho — The Mister Car Wash property, constructed in 2024, features a 5,381-square-foot facility on a 1.04-acre parcel.

mister-car-wash