Sales Dip Not Good For Automotive Market
Automobile manufacturers have hit a roadblock as the sales of their vehicles have dipped considerably this February compared to February of last year. Hmm, that’s not a good way to kick-off the year, folks.
Considered to be the lowest sales drop in a decade, clients have shied away from making big retail purchases, which resulted in a mediocre output of 16.37% for the dates of February 1 to February 17. The statistics, released by research firm J.D. Power & Associates, covered only retail sales made by car manufacturers. Sales generated through rental companies and agencies were not included since retail sales are considered to be the basis that there was indeed a demand coming from the clients. Due to concerns over housing, fuel prices, and inability to avail of credit loans, consumers have opted not to shell out their money to purchase automobiles. Companies like Toyota and Ford felt the demand for their product decline because of this hold out. Chrysler was dealt a big blow when it sales slipped to 27.5% despite making a commitment to their customers that they will work on adding more features to their vehicles. Out of all the car companies that were affected by the sales slump, it was only General Motors who got to enjoy a good start, thanks to its incentives and up-to-date products. All this despite encountering a slump during the first 17 days of February this year when it was only able to sell 31% of its vehicles, a low output compared to what they were able to achieve during the first 18 days of February last year.
However, despite the sales slump this month, some analysts believe that automotive sales will make a comeback during the second half of the year. That could bode well for the car companies affected by the sales drop. But only time will tell whether the forecast they made will come true or not.
Sources: The Truth About Cars, The Wall Street JournalÂ