US auto sales in February expected to improve slightly

Article by Anita Panait, on February 28, 2014

Auto sales in the United States in February are expected to improve slimly over January thanks to Presidents Day promotions and a slight warm-up from cold winter weather last month. High inventories as well as surging rising incentives are drawing doubts on whether the auto industry has already lost some of its momentum as the critical spring selling season arrives.

"We expect elevated incentive spending to continue," Larry Dominique, executive vice president of TrueCar, said in a statement. "March is going to be a 'must-win' month for dealers if they hope to have a successful 2014."

TrueCar expects new-vehicle sales in February to surge just 0.5 percent from a year ago, to a seasonally adjusted annualized rate of 15.4 million; January’s  SAAR was 15.2 million, affected by snowstorms and subzero temperatures across the US. Cars.com also expects a 15.4 million SAAR in February, with volume surging 1 percent.

Alec Gutierrez, senior analyst at Kelley Blue Book, expects flat sales overall in February, with General Motors and Ford Motor Co. logging the biggest drops among major carmakers since the worst weather occurred in parts of the country where they are most popular. He remarked that sales in California and other warmer areas that prefer to purchase foreign brands have been "very robust."

He projected a SAAR of 15.3 million for February. "There's still a lot of research activity -- a lot of folks out there looking to buy," Gutierrez told Automotive News, citing steady traffic on KBB's Web site as well as heighten sales activity during the lulls between snowstorms.  Barclays Capital analyst Brian Johnson remarked that aside from the weather, soft fleet shipments have had a negative impact on light-vehicle volumes for February. [source: automotive news - sub. required]

If you liked the article, share on:

Topics: united states, sales

Comments

Recommended

Lynk & Co, a carmaker founded just two years ago, is introducing its third production model: the Lynk & Co 03 sedan. This new model – derived from a concept...
by - August 10, 2018
It is quite common to see Mercedes-Benz taxis plying the streets of Germany. Mercedes-Benz E-Class taxi models can be found in almost every taxi stand throughout the country. In fact,...
by - August 10, 2018
The final production model of the 2019 BMW X7 is already set to be unveiled to the global public at the upcoming Los Angeles Auto Show in November. Yet would-be...
by - August 8, 2018
When the seventh-generation 2019 Lexus ES was unveiled in China in April, the all-new premium sedan managed to draw attention from customers around the world. For customers in the United...
by - August 8, 2018
Acura is rolling out this month the latest iteration of its mid-size three-row luxury sports utility vehicle – the 2019 Acura MDX. The sixth installment of Acura’s third-generation luxury SUV,...
by - August 1, 2018