Auto Sales Plummet in February, But Opportunity Awaits
Weak auto sales continued in February, with overall sales down 41% compared to the same period last year. This decline marks the worst sales since 1981. Despite an average incentive of $2,900, which was up 8% from the previous month, sales failed to pick up steam. The Big Four automakers - Ford, General Motors, Honda, and Toyota - all saw significant declines, ranging from 37% to 53%.
Key Takeaways:
- Ford sales plummeted 50%, mainly due to a tired product line and weak F-series sales.
- General Motors sales declined 53%, with weakness in the SUV part of the product line.
- Honda sales were off 38%, but improved upon the market average, showcasing their competitive edge.
- Nissan sales were down 37%, with Toyota sales declining 40%, possibly due to weak SUV sales.
- Hyundai managed to buck the trend, reporting flat sales, likely due to their "return your car if you lose your job" program.
- Chrysler sales dropped 44%, despite offering an average incentive of $5,500.
- Average incentives increased 8% to $2,900, but failed to stimulate sales.
- Honda sourced more of its content from the USA than even Chrysler.
- Ford, General Motors, Honda, and Toyota all saw significant declines in February sales.
Statistics:
- Overall sales decline: 41%
- Average incentive: $2,900, up 8% from the previous month
- Ford sales decline: 50%
- General Motors sales decline: 53%
- Honda sales decline: 38%
- Nissan sales decline: 37%
- Toyota sales decline: 40%
- Chrysler sales decline: 44%
- Hyundai sales performance: flat
Sources:
- Zacks Investment Research (Copyright (C) 2009, Zacks Investment Research)
- Zacks Investment Research's Analyst Blog (See all today's Analyst Blog entries)
- Comtex News Network, Inc. (SmarTrend Alert, an automated pattern recognition system)
- Comtex SmarTrend Alert for GM @ $4.66 on 11-26-2008
- Comtex SmarTrend Alert for HMC @ $21.99 on 12-10-2008