February US auto sales
The United States is the largest auto market in North America and the second largest in the world after China. Mainstream automakers such as General Motors (GM), Ford (F), and Fiat Chrysler Automobiles (FCAU) are highly dependent on the US market, which is the largest source of their revenues. Now, let’s take a closer look at the US auto sales data for February 2017.
Stagnation in US auto sales?
According to Autodata, total auto sales (VCR) in the US stood at ~1.3 million vehicle units in February 2017. This was ~1.1% lower than the total US auto sales of ~1.4 million vehicle units sold in February 2016. In January 2017, US auto sales stood at ~1.1 million.
The US auto industry has witnessed good times in the past couple of years. In 2016, US auto sales were at their highest, with ~17.6 million vehicles sold during the year, which boosted the confidence of these automakers.
However, these sales numbers also ignited a debate about US auto sales being at peak levels and whether a possible downturn in US auto demand was in the cards. So far in 2017, US auto sales figures are at ~2.5 million vehicles.
Japanese automakers such as Honda (HMC) and Toyota (TM) also have good exposure to the US auto market.
Auto sales are considered a leading indicator for a country’s economy. Therefore, any slowdown in auto sales could indicate diminishing consumer confidence and a weakening economy.
In this series, we’ll take a look at the February 2017 sales figures of mainstream automakers Ford, GM, Fiat Chrysler, Toyota, and Honda. We’ll also discover what these sales figures could mean for investors in automobile companies.
Read on to the next part to learn about Ford’s US sales data in February 2017.