US Car Industry Shows Vulnerability
The latest set of figures released from the US Automotive Industry highlighted the fragility and the vulnerability of the US car industry.
US Total Vehicle Sales
In a report issued by the Autodata Corp. official data showed on Friday that U.S. total vehicle sales increased last month at rate that was less than expected by the markets.
U.S. Total Vehicle Sales increased to a seasonally adjusted figure of 16.57M, down from the 17.54M recorded in the preceding month. This came after analysts had been expecting U.S. Total Vehicle Sales to increase 17.60M in February.
Sales for the month increased 3 percent to approximately 1.6 million vehicles. On an annual basis this amounted to 16.57 million vehicles. The figures were well below market expectations for an increase around 7 percent and annualized estimates by analysts and economists, ranging from 17 million to 17.5 million vehicles.
Regarded as a primary reason for the fall in sales was a heavy decline in demand for Sedans and light dealer sales over the Easter weekend. Stocks in many automotive companies fell on the news with Ford, Honda, GM and Chrysler stocks all posting declines following the weak data release.
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