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US auto sales fared better than expected

US January auto sales stronger than expected

US, February 3, 2016

US January auto sales stronger than expected

US auto sales fared better than expected in January as the industry continued to benefit from low gasoline prices, easy credit and moderate economic growth, major automakers said on Tuesday.

Sales were down 0.3 per cent at 1.15 million vehicles, Autodata Corp said, better than the expected decline of around 0.5 percent to 5 per cent forecast by analysts polled by Reuters before Tuesday.

January US sales were 17.58 million on a seasonally adjusted annualized basis, Autodata said. WardsAuto, which the US government uses for economic analysis, said the annualized rate was 17.46 million and that monthly sales fell 0.4 per cent from a year ago.

The same trends that boosted sales in 2015 helped blunt the challenges of two fewer selling days and a massive East Coast snowstorm.

General Motors Co, the top-seller in the US market, said its sales were up 0.5 per cent, while it increased its share of the retail market, which does not include fleet sales to rental agencies.

Ford Motor Co’s sales fell 2.6 per cent.

Toyota Motor Corp, No 3 in the US market, showed sales down 4.7 per cent.

Results of all of the 10 top-selling automakers in the US market except for Volkswagen AG topped expectations of forecasters.

Fiat Chrysler Automobiles showed sales up 7 per cent. Honda Motor Co sales fell 1.7 per cent, and Nissan Motor Co (7201.T) reported sales up 1.6 per cent. Hyundai Motor Co sales rose 1 percent.

The month shows a strong start of what is expected to be a second straight record year.

Still, auto company shares remain pressured as many Wall Street investors say the cyclical industry will soon plateau, ahead of a decline in several years.

Ford reported sales of its F-series pickup trucks were down 5 per cent, and its shares fell nearly 5 per cent. Fiat Chrysler shares traded in New York were down 4.1 per cent on Tuesday afternoon and GM shares were down 2.1 per cent. The wider S&P 500 index was down 2.1 per cent.

WardsAuto said US sales hit a record 17.39 million vehicles in 2015. Some forecasters say 2016 sales will reach 18 million vehicles.

Sales of GM's Chevy Silverado and Fiat Chrysler's Ram both rose 5 per cent. Each truck is its manufacturer's best-selling model for the US market.

Volkswagen AG’s VW brand sales fell 14.6 per cent as it continues to be affected by its diesel emissions scandal. Volkswagen AG sales including the VW, Audi and Porsche brands fell 7 per cent. - Reuters




Tags: | US | Sales | auto | January |

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