U.S. Auto Sales Are Expected to Drop Below 17M for First Time Since 2014
CNBC reports that automakers are projected to sell 16.8 million passenger vehicles in 2019, a 1.1 percent decline from this year and below 17 million for the the first time since 2014, according to the National Automobile Dealers Association's annual sales forecast released Thursday. U.S. sales eclipsed 17 million in 2015 for the first time since the recession, peaking at 17.6 million vehicles sold in 2016. They've been falling ever since, and they are expected to continue that trend next year. Higher interest rates and a bevy of new cars coming off lease stand to push more customers into the used market in 2019, said Patrick Manzi, senior economist for the trade group. For 2018, car dealers are expected to sell 17 million vehicles, a better year than the industry had anticipated. Car buyers mostly purchased light trucks, cross-over vehicles, pickups and SUVs, he said. Read more here.
China to Cut Tax on U.S. Vehicles to Ease Trade Tensions
China will remove the retaliatory duty on automobiles imported from the U.S. for three months in an effort to defuse trade tensions with the world’s biggest economy, reports Automotive News. The 25 percent tariff it imposed in a tit-for-tat measure will be scrapped starting Jan. 1, the finance ministry said Friday. The move comes two weeks after President Donald Trump and his Chinese counterpart Xi Jinping agreed to a truce in the trade war at their meeting in Argentina. Trump claimed he won a concession during trade talks with Xi and said China, the world’s biggest automobile market, would reduce and remove tariffs, a claim that Beijing didn’t immediately confirm. The White House is also looking to officially delay the tariffs that had been due on Jan. 1, with an announcement expected on Friday. Read more here.
Japanese Brands Will Dominate Detroit Auto Show Press Schedule
Only three Detroit brands will have press conferences at January's North American International Auto Show, with show stands dominated by announcements from Asian automakers. According to The Detroit News, some 66 percent of the press conferences spanning from Jan. 13-15 will be hosted by Asian automakers and their brands. Only one European brand, Volkswagen, will be represented. A scheduled press conference at the show typically signals a new product reveal or a refresh of an existing vehicle. There are 12 confirmed press conferences by automakers scheduled right now, compared to 15 last year. The Detroit Auto Dealers Association, which hosts NAIAS, has said it expects 30 product reveals at the show, compared to some 69 debuts in 2018. Read more here.
Volkswagen on Track to Break Last Year's Sales Record
Volkswagen, which last year vied for the title of world’s largest carmaker, says it is on track to beat that performance with a new annual sales record – despite trouble getting vehicles certified for new European emissions tests. The Detroit News reports that sales head Christian Dahlheim said Friday that “we are confident” 2018 will end with a figure slightly above the previous record from 2017, when the company sold 10.74 million vehicles. November sales figures left Volkswagen with 9.92 million vehicles sold during the first 11 months. That was up 1.8 percent over the same period last year, when the company sold 9.74 million vehicles across its brands, which include Audi, Skoda, SEAT, and Porsche. Volkswagen says volume records are no longer a top priority. A key earnings target instead is how much profit it makes on those sales. Read more here.
Nissan Board May Fail to Select New Chairman on Monday, Report Says
Nissan Motor Co.'s board may fail to select a chairman to succeed Carlos Ghosn as had been planned on Monday after a panel tasked to choose a candidate was unable to agree on a nominee in a meeting held Thursday, reports Automotive News. The panel of Nissan's three external board members would continue their discussions, the business daily said. The panel could end up postponing their decision, which was to be put to the rest of the board on Monday, the report said. Ghosn has been held in a Tokyo jail since he was arrested on Nov. 19 on suspicion of conspiring to understate his pay by about half of the actual 10 billion yen ($88 million) awarded over five years from 2010. Meanwhile, Renault's board did not consider replacing Ghosn when it met on Thursday, interim chairman Philippe Lagayette said in a statement issued by the carmaker. Read more here.
Webinar: A 2018 Review and 2019 Projections
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Featured speakers include:
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Tom Kontos, Sr. V.P. and Chief Economist for KAR
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Jonathan Smoke, Chief Economist at Cox Automotive
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