You call this a slump?
Sales fall, but shift to more profitable mix
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.
Industrywide, transaction prices are up 1.5 percent this year to $34,442 before incentives.
Compact crossovers and SUVs sell for nearly $8,000 more than compact
cars, KBB said, while midsize crossovers and SUVs transact at about
$12,500 more than their sedan counterparts. Automakers would much rather
let consumers gravitate toward the costlier vehicles than try to draw
them to slower-selling cars with big discounts.
(AutoNews.com)
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