China and Brazil Auto Sales Plunge



POSTED BY Ed (36 days ago)
China's car sales plunged 11.6% in September, making for the biggest drop in almost seven years.

Automobile production in Brazil plummeted by 23.5 percent in September, compared to the prior month, while sales slumped by 14.2 percent, the national automakers’ association said on Thursday.


Ed (36 days ago)
UK car sales plunge 20 per cent in September

Ed (24 days ago)
The downward spiral in the US auto industry is accelerating, and there may be no improvement anytime soon.

According to a new report by CNBC, October is shaping up to be another terrible month for the industry, after an already abysmal September, as auto dealers around the country have been plagued by marked drops in retail sales and customer traffic in their showrooms.

Scott Adams, the owner of a Toyota dealership in Lee’s Summit, Missouri, told CNBC: “We are definitely seeing business pull back. September was off some, but this month our car sales are down 12 percent and our truck sales are down 23 percent." The report notes that the drop in sales was most pronounced last weekend

Ed (23 days ago)
“[China] The chief engine of growth for the world’s carmakers is turning into their biggest headache. In the past 48 hours, auto giants from Volkswagen AG and Ford Motor Co. to Renault SA and PSA Group have pinned flagging profits and weakening sales outlooks on a slowdown in the world’s largest auto market. The companies spent billions of dollars over the past two decades setting up production and sales channels in China, as rapid growth saw millions buy first — and second — cars, only to see demand fizzle as the economy wavers.”

Ed (19 days ago)
“UK car output fell by 16.8% in September according to the latest data issued by the Society of Motor Manufacturers and Traders. The trade association said some 25,610 fewer cars rolled off production lines than in the same month last year, capping off a turbulent first three quarters as global trade tensions… September production fell for both home and overseas markets, down year on year by a respective 19.0% and 16.2%.”

Ed (17 days ago)
“Double Whammy of Rising Rates for Us and Our Consumers”: AutoNation

We knew “free money would inevitably end. Affordability would become an issue – particularly around new vehicles.”

It has been a tad rough in the stock market for AutoNation, the largest auto retailer in the US, with 242 new-vehicle dealerships, selling 33 brands, including Toyota, Lexus, Honda, Acura, Ford, GM’s brands, Fiat-Chrysler, Mercedes-Benz, Nissan, Infiniti, BMW, Volkswagen, Audi, Porsche, etc. After the company reported earnings on Tuesday, shares [AN] dropped 4%, and this morning, they’re down another 3% (despite the overall market which has been up sharply on both days). Shares have now plunged 37% from their 52-week high in January.

The problem is in new-vehicles sales.

Many customers are strung out by high vehicle prices and rising interest rates, and they’re switching to used vehicles, which AutoNation also sells – and that part of the business is good. But the new-vehicle business was lousy in the third quarter, compared to the same period last year:

New-vehicle sales fell 5.6%, to $2.93 billion.

The number of new vehicles retailed fell 6% to 78,300 vehicles (overall industry sales fell 4%).
Due to rising prices from manufacturers and a consumer shift from cars to more expensive SUVs and trucks, average revenue per new vehicle retailed rose by nearly $1,000 to $37,017.
New-vehicle gross profit (revenue minus what manufacturers charge after incentives) plunged 13.4% to $125 million.

Per new vehicle retailed, gross profit dropped 7% to $1,571.


Ed (8 days ago)
“The slump in China’s automotive sector dragged on through October, with year-over-year sales down for the fourth straight month.

“Auto sales last month were off 12% from a year earlier to 2.38 million, the government-backed China Association of Automobile Manufacturers said Friday.”

Ed (8 days ago)
“BMW has reported that its profit dropped by 27 per cent in the third quarter of 2018. In a statement, the German premium car-maker blamed currency fluctuations, raw material costs, the high cost of electric- and autonomous-vehicle R&D and US president Donald Trump’s trade wars for the fall in profit…

““Along with the rest of the industry, we are increasingly confronted with adverse external factors, the negative impact of which cannot be fully offset,” BMW’s Chief Financial Officer, Nicolas Peter, said.”

Ed (1 day ago)
This is unnerving on the heels of China’s 11.7% yoy fall for October car sales.

They can’t blame *this* on the new emissions tests .

“New car registrations in Europe slumped 7.4 percent in October on falling demand in Germany, France, Italy and Spain and as registrations of Audi, Nissan and VW branded vehicles saw sharp declines, monthly auto industry data showed.”

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