Steel Markets
Auto Sales Mixed in January
Written by Sandy Williams
February 1, 2018
U.S. automotive sales were a mixed bag in January. General Motors’ sales climbed mildly by 1.3 percent. Ford and FCA saw sales drop, while Toyota gained 16.8 percent year over year.
Asian manufacturers, in general, did well in January. Mazda had its best January since 1994, reporting double-digit growth along with Kia and Nissan. Honda slipped 1.7 percent and, despite strong SUV sales, Hyundai sales plummeted 11.0 percent.
“As we expected, the SUV focused-market continues into 2018 with consumer demand in those segments outpacing all others,” said John Angevine, director, National Sales, Hyundai Motor America.
Ford’s U.S. sales chief Mark LaNeve agreed. ”This (passenger cars) continues to be a difficult segment as we see a continued shift into SUVs,“ he said during a conference call on Thursday, adding ”we anticipate continued migration” from cars to SUVs over the next five years.
“Sales for the industry as a whole look like they’re going to come in above expectations,” said Jim Cain, General Motors U.S. sales analyst. “You can never predict a full year based on January results, but we see very strong underlying demand. People are working, people are getting raises and people are getting tax cuts. That’s bringing them into the showroom for crossovers and trucks.”
U.S. auto industry sales slipped 2 percent in 2017 to 17.23 million vehicles and are expected to continue to soften further in 2018. WardsAuto predicts sales will be around 1.16 million for January and the seasonally adjusted annual rate will be about 17.2 million.
“I think (consumer) incentives have reached the limit of their effectiveness in the marketplace,” Mike Jackson, CEO of AutoNation Inc. told Reuters. “I think the industry has accepted that (sales) volumes will fall somewhat in 2018 … and I don’t think the industry is going to go over the cliff with insane incentives.”
Judy Wheeler, head of U.S. sales for the Nissan brand, said the recent tax overhaul should be a positive for sales in 2018. “I think customers will have more disposable income … and we’ll see them come in to get into a new vehicle,” she said.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Markets
CRU: Sheet import demand softens as domestic price gains have slowed
US domestic sheet price gains have begun to slow as previously pulled-forward demand has led to a decline in orders.
CMC looks beyond Arizona micro-mill woes to long-term viability of construction mart
Despite the economic and geopolitical upheaval of the last five years, CMC President and CEO Peter Matt points out that the construction market has been an essential element of the way forward.
US importers face stricter rules under revamped S232 tariffs
“CBP expects full compliance from the trade community for accurate reporting and payment of the additional duties. CBP will take enforcement action on non-compliance," the agency said in a March 7 bulletin.
Steel exports rebound in January
US steel exports recovered to a five-month high in January after having fallen to a two-year low in December. This growth follows four consecutive months of declining exports.
Construction spending drops marginally in January
Construction spending edged down slightly in January, slipping for the first time in four months. The US Census Bureau estimated spending at a seasonally adjusted annual rate of $2,196 billion in January, down 0.2% from December’s downward revised rate. The January figure is 3.3% higher than a year ago. January’s result, despite the slight erosion, […]