The anticipated spring vehicle sales boost fails to materialize.
If wishes were auto sales, than dealers would be riding high, but once again predictions of a resurgence of sales as the spring selling season began in April were made a mockery of as the final data became available.
Overall April sales, including domestic and offshore-owned brands, unadjusted for business days, were down 34.4% from April 2008, according to numbers from Autodata Corporation. The seasonally adjusted annual sales rate (SAAR) now stands at 9.5 million, where it has been stuck all year.
Offshore-owned brands sold 442,124 vehicles in April, down from 656,034 in April 2008. Asian brands accounted for 45.5% of the market, up from 44.7%i n April 2008, and Europeans had an 8.5% share, up from 7.5%. Domestic brands finished the month with 46% of the market.
“We haven’t seen the numbers we hoped for this spring,” said American International Automobile Dealers Association Chairman, Russ Darrow. “It is becoming increasingly clear that point-of-sale stimulation is necessary to jumpstart a recovery. Specifically, we need Congress to pass a scrappage/fleet modernization bill. Any bill must be immediate, simple, and inclusive of all brands retailed in the United States.”
AIADA represents more than 11,000 dealer franchises of offshore owned brands, which so far this year account for 56% of all vehicles sold in the United States. The lobbying group was stung last week President Obama’s plea that Americans should buy American cars.
Mercedes Benz’s Smart is now the only brand sold in the United States to have seen positive growth in 2009. Among offshore brands, Toyota Motor Corporation was especially hard hit, with sales falling 42.2% from last April.
The Honda Accord overtook the Ford F-Series pickup truck for the first time this year, handily knocking the F out of first place where it had resided since January. The Hyundai Sonata is the only offshore vehicle in positive territory, holding the 14th spot, selling 11,815 vehicles, up 7.4% over this time last year. International vehicles hold 10 of the top 20 vehicles slots for the month of April.
April’s weak numbers were a sharp slap of reality to the faces of analysts who predicted a spring recovery. Still, automakers and dealers see some cause for optimism. Sales have remained relatively steady for the past four months, which lead some to think that the bottom of the market has been reached. In addition, consumer confidence rose in April, from 26.9% to 39.2%, its highest level in 2009.
And so on to May. Expect more incentives, and more raids on the U.S. Treasury via requests for taxpayer assistance to appear.
Accord knocks off the Ford F-Series, and Civic is pressing Chevrolet Silverado.
Offshore owned brands so far this year account for 56% of all vehicles sold in the United States.
