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US Auto Sales Decline 4.1% in August Due to Low Demand for Passenger Cars

US Auto Sales Decline 4.1% in August Due to Demand for Passenger Cars 1 photo
Photo: http://www.chinadaily.com.cn
The decline in sales that everybody has been waiting to see all year finally happened. After a surprisingly robust July, the industry recorded a major decline of 4.1% in August, with many carmakers saying that we have reached a peak in demand.

The upside is that because everybody was counting on a small recession in the auto industry, stocks remained flat. This is also good news for the customers, who can expect sweeter deals, as incentives will be needed to shift existing stockpiles.

General Motors says it expects a 3% annual decline, while other automakers hint at 5%. Ford's opinion, meanwhile, is that demand will plateau, not drop.

It's not all bad new. While August sales of passenger cars fell from 687,998 last August to 600,983 this year, demand for light trucks actually rose from 889,409 to 911,573. Without the trucks, people might have panicked, as regular cars dragged 13%. Volvo also shocked everybody by reporting a 31% increase in August, thanks mainly to the XC90.

Among the three major US automakers, Fiat Chrysler Automobiles, General Motors and Ford all posted year-on-year losses of 2.4%, 5.2%, and 8.8%, respectively. It's a similar story with Japanese automakers like Nissan (-6.5%), Toyota (-5%) and Honda (-3.8%).

The picture looks bleaker if we only look at their passenger vehicles. Toyota car sales fell 12.5%, Honda car sales declined 11%, and Nissan car sales plunged 24.6%.

Wow, Nissan, what did you do to piss people off? For starters, nobody wants to buy a sedan from them. The Altima, for example, is down nearly 40%. Yeah, let's pretend that the industry isn't in a recession... because it is.

In fact, all mid-size sedans were hit hard, while crossovers and SUVs are doing well. Models like the Nissan Rogue, Ford Escape, and Toyota RAV4 all posted double-digit increases.

It's being reported that automakers boosted incentives by 7.7% in August, reaching levels that weren't seen for many years: $3331 per vehicle. But it seems that unless you incentivize the right things, people still won't buy it. It's a shame, as gas won't stay cheap forever and even the smallest crossovers are bad at sipping fuel.
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About the author: Mihnea Radu
Mihnea Radu profile photo

Mihnea's favorite cars have already been built, the so-called modern classics from the '80s and '90s. He also loves local car culture from all over the world, so don't be surprised to see him getting excited about weird Japanese imports, low-rider VWs out of Germany, replicas from Russia or LS swaps down in Florida.
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