For the Memorial Day holiday weekend, potential buyers were enticed to purchase vehicles from Ford Motor Co., Honda Motor Co. and Nissan Motor Co. with offers of added rebates and discounts that could very well result to the longest streak of sales increases in nearly a decade.
Bloomberg compiled the estimates of eight analysts who tell us that industrywide deliveries likely reached a seasonally adjusted annual rate of 11.2 million light vehicles in May.
Bloomberg Data further shows that if sales actually exceeded the 9.9 million rate from a year ago, then the past eight months of increases mark the first time since June 2000 that this happened.
Researcher Edmunds.com said that sales during the Memorial Day weekend in the past three years are about 40% higher than the typical May weekend.
Edmunds also noted that sales on the last day of the month were more than double the average day. Jim Sanfilippo, chief operating officer of Innocean Worldwide Americas LLC, said that the activity during the weekend is aligned with the start of the big summer selling season.
Innocean is Hyundai Motor Co.'s in-house advertising agency. Meanwhile, Jeff Schuster, executive director of J.D. Power & Associates in suburban Detroit, said that higher discounts may have become necessary to make up for the weak sales.
Schuster said that results were boosted from sales to rental-car companies and discounted fleet purchasers.