Light-vehicle sales in the US in August cooled in comparison to a full-boil finish in August 2009, when the government’s CARS program was in place. Last summer’s CARS program, also known as “cash for clunkers,” offered $3,500 to $4,500 in cash incentives to consumers who traded in an older car or truck for a more fuel-efficient new vehicle.
In its most recent analysis, J.D. Power and Associates reports that total sales declined 17.84% from last year and that the August seasonally adjusted annual sales rate (SAAR) will hit 11.43 million units, down slightly from 11.5 million units in July 2010. The August sales pace is well below last year’s inflated 13.8 million-unit pace, which was even ahead of the pace in August 2008, according to J.D. Power research data.
“With mixed economic signals and flat incentive levels, there hasn’t been enough horsepower behind the recovery to motivate consumers to regain their confidence and purchase vehicles at a higher rate,” Jeff Schuster, executive director of global forecasting at J.D. Power and Associates, told Automotive News. He also said, “It’s likely that new-vehicle buyers are holding off on purchases in anticipation of Labor Day incentives, which may benefit September sales.”
A few early August sales results from the manufacturers:
- General Motors and Ford Motor Company posted double-digit sales declines from last August. GM’s Buick and Cadillac brand sales climbed in double digits, while Chevrolet sales slumped. Ford’s Lincoln brand posted an increase, mainly due to higher Town Car deliveries, which may be mostly fleet sales, and the Ford F-Series, which is the best-selling model in the U.S. market, outpaced results from August 2009.
- Chrysler Group sold more new vehicles this year with gains for Jeep, due in part to demand for its new Grand Cherokee, as well as increases for its Dodge and Ram brands.
- Most of the Asian automakers, including Toyota, Honda and Nissan Groups, posted double-digit declines in comparison to their stellar totals last August when sales were bolstered by the CARS program.
- A number of premium brands, in addition to Lincoln and Cadillac, also posted increases from last year. Mercedes-Benz and Porsche deliveries climbed in double digits from August 2009. Acura also sold one-fourth more models this year vs. last year, and BMW sales also improved.
- Independents, including Subaru and Mazda, posted lower sales than in August 2009.
[...] This post was mentioned on Twitter by Candace Blanchard, J.D. Power Autos. J.D. Power Autos said: August Sales Decline is Distorted by CARS Program Comparison – http://bit.ly/dj4wvq [...]
[...] been ample opportunity since then to downsize—for example, as recently as in 2009, when the government’s CARS program was initiated. Of course, a consumer may still buy a large vehicle if there is a specific need for [...]
[...] been ample opportunity since then to downsize—for example, as recently as in 2009, when the government’s CARS program was initiated. Of course, a consumer may still buy a large vehicle if there is a specific need for [...]