Updated: 03-Mar-10 10:33 ET
| February Auto Sales |
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| Updated: 03-Mar-10 10:33 ET |
Highlights
- Motor vehicle sales weakened in February, declining from 10.76 mln vehicles to 10.36 mln. The consensus expected sales to fall to 10.40 mln.
- The split between drops in domestic and imported vehicles was fairly even, as domestic sales fell 221,000 and imports declined 176,000.
- Rounding errors made the sales decline between domestic autos and light trucks also look even. However, domestic light truck sales actually fell by 164,000 compared to a more modest 57,000 decline in auto sales.
Key Factors
- The Big 3 US motor vehicle manufacturers posted a 19.0% increase in sales from a year ago. Ford (F) was the most impressive with a 43% y/y increase.
- Toyota (TM) sales declined 9% y/y, but many analysts were expecting much worse considering all of the bad press surrounding last month’s recalls.
Big Picture
- The Cash for Clunkers stimulus package has led to a large increase in automobile purchases in July and August. A strong pull-back was expected to last through the end of the year, but consumer demand quickly stabilized in October and looks to hold steady through at least December. The recent stability in sales coupled with the extremely strong Cash for Clunkers demand in July and August resulted in a severe drop in dealer inventory levels. Production is expected to surge over the next few months as manufacturers rush to restock.
| Category | FEB | JAN | DEC | NOV | OCT |
| Domestic Light Vehicles | 7.9M | 8.2M | 8.6M | 8.4M | 7.9M |
| Autos | 3.7M | 3.8M | 4.1M | 3.8M | 3.7M |
| Light Trucks | 4.2M | 4.4M | 4.5M | 4.6M | 4.3M |
| Total Light Vehicles (incl imports) | 10.4M | 10.8M | 11.2M | 10.9M | 10.5M |
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