Ford’s April US sales fall 7.2 percent on sagging car demand

Sales at Ford, the No. 2 US automaker by sales after GM, fell 7.2 percent in April, while Toyota 7203.T TM.N recorded a drop of 4.4 percent and FCA sales were off 7 percent.

Ford sold 70,657 full-size and heavy duty F-Series pickups in April — more than the combined sales of BMW and Mercedes-Benz – and sales still fell 0.2%. UBS maintained General Motors Company (NYSE:GM) rating on Friday, July 24.

The U.S. vehicle industry has been on a winning streak since bailouts rescued General Motors Co. and other auto companies in 2009. Ford’s inventory also rose, from 66 days sales outstanding to 72 at the end of April. Selling-day-adjusted retail sales were essentially equal to a year ago.

GM U.S. sales operations vice president Kurt McNeil said in a statement that about one in four GM sales were crossovers five years ago. Ford Motor Co. (Ford) (-7.2%) also relied on demand for SUVs and its F-Series pickups, while Fiat Chrysler Automobiles (FCA) (-7%) got a lift from trucks, a few auto models, and a minivan model.

“We’re still seeing a high level of sales”, said Michelle Krebs, senior analyst at AutoTrader. Toyota sold 17,006 of the company’s midsize Tacoma pickups, down 6.1% compared with April of past year. The stock plummeted -1.46 percent over the past month and fell -5.44 percent year-to-date. But that would be an improvement from March’s 16.5 million.

Ford’s sales fell 7.2 per cent, dragged down by auto sales that tumbled over 21 per cent. Finally, Patriot Financial Group Insurance Agency LLC purchased a new position in shares of General Motors Company during the fourth quarter worth $197,000.

ATR is counted for different periods, like 9-day, 14-day, 20-day, 50-day and 100-day.

Sales are slowing despite strong economic fundamentals.

Fred Rentschler, a dealer in Slatington, Pa., said his family’s Chevrolet store has 120 models on the lot and another 50 being delivered, almost 20% more than the same time a year ago. Overall, combined deliveries of passenger auto models at Nissan and Infiniti declined 12 percent. All of its brands were down, with the exception of Ram (up 5.3 percent) and low-volume Alfa Romeo, which sold 677 vehicles. Ford’s shares were down 4.47% yesterday, GM’s were down 3.35%, while Fiat Chrysler’s US-traded shares were down 4.95%. Volkswagen posted a slim increase. It was about the same story at General Motors, where sales were down 5.8 per cent as strong performances from some SUVs and the Cruze compact auto couldn’t offset falling pickup truck demand.

Multiple brands – Chevrolet, Mitsubishi, Jeep, GMC, Porsche, VW, Cadillac, Acura, Fiat, Buick and Alfa Romeo – started April with USA inventories that topped 90 days or more, well above the 60-day level considered optimal.

“Coming out of bankruptcy we were happy when the industry did 10 or 11 million”, he said.

In an effort to keep new vehicles moving off the lots, automakers have ratcheted up discounting. Total incentive spending was up 13 percent so far this year to $3,814 per new vehicle, according to a joint analysis by JD Power and LMC Automotive. The electric vehicle maker reports earnings tomorrow, where it will update everyone on progress for its upcoming Model 3. But there are signs that the industry is relying too heavily on incentives. This year, analysts expect fewer sales, but most envision more of a plateau, not the kind of drop-off that could hurt the economy. (-7%), Nissan North America (Nissan) (-1.5%), and Hyundai Motor (Hyundai) (-1.9%) all reported dips, although each garnered gains from SUVs.

Even as discounts rise, automakers have remained profitable because of rising transaction prices, especially on popular crossovers, SUVs and pickups.