GM Canada sales up 22 pct in July, Fiat Chrysler slips

Marcus Newton
August 3, 2017

In the United States, GM sales dropped 15 percent to 226,107 from a year earlier as the company cut sales to daily rental fleet by more than 80 percent.

General Motors Co said on Tuesday it slashed July sales to rental auto fleets in the United States by 80 percent compared to a year ago to just over 2,700 vehicles, while increasing sales to commercial fleets.

After seven years of US auto sales growth, this year's persistent slump - and anxiety over upheavals from electrification, autonomy and mobility services - has investors shunning automakers as benchmark stock indexes graze record highs. Ford said total vehicle sales for last month tumbled 7.5% from a year, as a 19.4% plunge in auto sales and a 7.1% slide in truck sales offset a 2.2% rise in SUV sales. The drop was lower than the 7 percent decline in June. Separately, rival General Motors Co.'s stock slid 3% after reporting July vehicle sales fell 14%.

Ford said July sales fell 7.5 percent, but inventory fell to 77 days from 79 the previous month. That was lower than expected, said Alec Gutierrez, a senior market analyst with the Kelley Blue Book site, but he is maintaining his full-year forecast of 17.1 million sales. Ford shares were down three percent, and Fiat Chrysler was down 0.025 percent.

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Mark LaNeve, Ford Motor Co.'s US sales chief, said automakers have been preparing for lower sales this year. Fiat Chrysler said sales dropped 10 percent.

Automakers continue to see healthy profits, thanks to consumers' preference for SUVs. Average interest rates on new-vehicle loans fell to a six-month low of 4.77 percent in July as more brands offered no-interest financing, Edmunds said.

The average vehicle incentive jumped $279 in July from a year earlier to $3,876, while the average retail transaction price crept up only $42 to $30,772, J.D. Power estimated, based on data from the month's first 18 selling days.

But vehicle sales are plummeting, hurt by low gas prices and changing tastes.

Other reports by MaliBehiribAe

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