General Motors Reports Weaker-Than-Expected July Sales as Auto Industry Stumbles

  • General Motors Reports Weaker-Than-Expected July Sales as Auto Industry Stumbles

General Motors Reports Weaker-Than-Expected July Sales as Auto Industry Stumbles

Ford's fleet sales - the sales of vehicles to rental auto firms, corporations, government agencies, and utility companies - were down 26.4% in the second quarter of 2017.

Shares of Ford Motor Co. dropped 2.9% in very active morning trade Tuesday, after the auto maker reported a sharp drop in vehicle and truck sales in July.

Analysts have been predicting lower sales this year as demand levels out after an unprecedented seven straight years of growth. GM, which has been trying to wean itself off lower-margin shipments to rental companies, said those sales plunged 81 percent in July from a year earlier. Toyota's sales rose 3.6 percent while Subaru's were up 7 percent. Ford's decline? 7.5 percent.

Sales of mid-size cars are expected to fall 14.5 percent in July, compared to a year ago, and compact sedans to fall 10.6 percent, USA Today reported, citing Kelley Blue Book.

Fiat Chrysler's Ram truck division had flat sales, but Jeep fell 12.3 percent, Chrysler fell 30.1 percent, Dodge was off by 11.9 percent and Fiat lost 18 percent. The projected rate, which is adjusted for seasonal trends, would be down from 17.9 million a year earlier, though it alsowould be the fastest rate since February.

Mark LaNeve, Ford Motor Co.'s US sales chief, said automakers have been preparing for lower sales this year.

Canada's economy grew by 0.6 percent in May from a month earlier, Statistics Canada said last month, exceeding economists' forecasts for 0.2 percent.

Automakers continue to see healthy profits, thanks to consumers' preference for SUVs. "A strong real estate market, especially with regard to new home construction, in conjunction with low fuel prices, generous incentives and improved product offerings will help to keep truck sales strong".

The Explorer SUV, which is made at Ford's Chicago Assembly Plant just across the state line in Hegewisch, saw retail sales rise by 20.4 percent last month, with a third of the gains coming from the premium Limited, Sport and Platinum models.