Is This A Slump? Sales Are Down But High Profit Vehicles Are Up

As down years go for the U.S. auto industry, 2017 may turn out to be the best one ever.

Total sales have fallen for six consecutive months, but the market is nowhere near as gloomy as that sounds. Retail sales have slipped less than 1 percent from a year ago, with the slowdown largely a product of reductions in less-profitable fleet deliveries.

And for many automakers, especially the Detroit 3, the fact that consumers are snapping up high-margin SUVs and crossovers instead of less-expensive sedans has been a boon to their bottom lines. U.S. light-truck sales rose 4.7 percent in the first half, setting records in every month except April and heading toward a total for the year of more than 11 million, after hitting 10 million for the first time in 2016.

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TomM - 7/10/2017 3:41:32 PM

+1 Boost

Be Fair - new vehicle purchases are now in the realm of the higher income people of the country. The average guy can afford his Mercedes CLA - in the used market 10 years later. Ad as long as the middle class jobs that paid respectable wages continue to move away - so will sales of lower end cars - mostly bought by middle class workers. (When they don't drive the old Truck)

SO - there are a lot less RICH people in the country - which restricts volume of sales - but since those people have really done well over the last 4 years - they can afford a higher priced vehicle with everything in it.

Also note - My Chrysler MiniVan is considered a "Truck" as are virtually all SUV/CUVs - even those cute little tiny ones. Even if they are based on a "car" plaform - they are considered trucks.

MDarringer - 7/10/2017 4:20:47 PM

+1 Boost

@TomM

"fewer" not "less"

This is total BS: "...new vehicle purchases are now in the realm of the higher income people of the country..."

carsnyc - 7/10/2017 4:15:41 PM

+1 Boost

Yes, this is just an indicator of what's happening to the middle and upper middle classes.
On the other hand, one per cent continues to do better while the lower classes have remained the same.

MDarringer - 7/10/2017 4:21:40 PM

+1 Boost

And out comes the tired class warfare BS of the idiot left.

Truthy - 7/11/2017 9:56:38 AM

+3 Boost

TomM, where do you get your information that there are a a lot fewer rich people in the US? There are now a record 10.1 millionaire households in the US. Not really indicative of "fewer."

Truthy - 7/11/2017 10:00:04 AM

+5 Boost

MDarringer, leave politics out of a car blog. Before you criticize the left better to start adding up the rapidly growing list of failures of this president [sic] and the republican congress that have failed for the second time to advance a healthcare bill despite controlling the congress and the executive branch.