Not that there’s ever a “good” timing for a natural disaster, but for East Coast new car dealers, especially those in New York, New Jersey and Pennsylvania, traditionally very big markets for light vehicles, hurricane Sandy had a devastating effect as far as sales are concerned.
That’s because, apart from any damages dealers suffered, they also had to shut down their showrooms at the end of October, when their daily sales are at their peak.
Moreover, deliveries scheduled for early November are likely to be affected, though dealers are expected to make at least part of that up by buyers seeking replacements for their totaled cars.
The 13 states in the East Coast, from North Carolina to Maine, that were hit the hardest from the devastating storm along with the District of Columbia account for a combined 20 to 25 percent of total light vehicle sales in the U.S. each year.
As a result of Sandy, WardsAuto had to lower its seasonally adjusted annual rate (SAAR) well below its initial estimate of 15 million, to 14.2 million units.
SAAR is determined by dividing the unadjusted annual rate for the month by its seasonality factor, resulting in an adjusted annual rate for the month.
Even so, that figure is still higher than last year’s SAAR of 13.3 million, while total October sales were up by 6.8 percent, to 1.09 million units.
Sandy may have dented new car sales, but still in October new car sales in the U.S. recorded the 26th consecutive year-over-year increase and year-to-date sales reached 11.950 million, 13.8 percent up from the same period in 2011.
Sales of small cars increased by 20.8 percent, which a Ford analyst attributed to gasoline prices rising to US$5 per gallon in California, the largest single vehicle market in the U.S. and one where small cars account for 30 percent instead of the nationwide average of 20 percent.
Almost all manufacturers reported increased sales compared to 2011.
GM saw its sales rise by 4.7 percent, but its market share fell for the 13th month in a row, from 2011’s 18.4 percent to 18.0 percent. Ford’s market share was also below that of 2011, by 1.1 percent, while its deliveries were also slightly lower because of Sandy as well as a lack of new Fusion inventory.
Toyota, on the other hand, may have lost second place to Ford, but it recorded a 15.8 percent increase and its seventh straight month of rising market share, which was 30 percent above last year’s disastrous results.
At Chrysler, too, they must be more than satisfied with their performance as the group recorded its 31st (!) straight increase last month, with sales up by 10.2 percent compared to 2011.
By Andrew Tsaousis
Story References: WardsAuto
PHOTO GALLERY
