Sluggish April Sales Suggest The U.S. Car Boom Could Be Over

Wall Street investors fear that the new vehicle sales boom in the United States could be faltering following a drop in sales in April 2017.

A number of major automakers posted declines in sales last month compared to April 2016 on the back of what was already a sluggish March.

For example, Ford’s car sales fell by 21 per cent and its trucks declined by 4.2 per cent. Similarly, Lexus sales dropped by 11.1 per cent, Nissan sold 1.5 per cent fewer vehicles than April 2016 and Honda followed suit by reporting a 7 per cent decline in sales. GM’s were also down by 6 per cent and Toyota’s sales fell by 7 per cent.

News of a weak April sent the share prices on many carmakers falling, including General Motors by 2.9 per cent, Ford by 4.3 per cent and FCA by 4.2 per cent.

Reuters reports that while sales of SUVs and crossovers have continued to grow, they alone haven’t been enough to quell the slide in overall sales.

Falling sales have led to an increase in manufacturer inventory levels, something which head of the North American automotive practice for AlixPartners, Mark Wakefield, said can only be resolved if companies cut production and offer higher discounts for unsold vehicles.

PHOTO GALLERY