Car sales in the US slowed significantly in April, accelerating several months of declines that suggest the industry's record sales streak may be behind it. The big three American automakers on Tuesday all reported sales fell in April compared to the same period last year. Many analysts had expected the retreat, forecasting an industry-wide decline of anywhere between one to four percent. GM, the biggest US automaker, saw its sales drop 5.8 percent from April 2016, while Ford sales fell 7.2 percent, and FCA US, the North American arm of Fiat Chrysler, dropped seven percent.
Toyota, one of the world's biggest car makers, saw a decline of 4.4 percent in the US market year-over-year. It was the fourth straight month of decline for the industry, which Automotive News characterised as "the longest losing streak since the market bottomed out in 2009." Sales to consumers at car lots - rather than corporate, government and rental fleet sales - accounted for a big part of the downward slide at most companies.
Even Americans' love affair with sport utility vehicles and light trucks could not compensate for the decline. In the first three months of the year, SUV sales accounted for 40 percent of all vehicles sold in the US for the first time ever, said industry analyst Jessica Caldwell of Edmunds.
Car makers have relied on incentives and discounting to lure customers into dealership lots. Total incentive spending was up 13 percent so far this year to $3,814 per new vehicle, according to a joint analysis by JD Power and LMC Automotive. Pricier SUVs may account for average transaction prices for vehicles in the industry overall remaining flat in April at $34,814, according to Caldwell. While off its peak, the US car industry is still selling a lot of vehicles. GM touted double-digit spikes in sales of crossover vehicles, with Chevrolet and GMC models up 20 percent or more, and Buick and GMC models seeing increases in the 40 percent range. FCA US was down across all of its brands, except Ram trucks which saw sales rise five percent. Ford's bright spot was SUVs, with a 1.2 percent gain, while the company's total car sales plunged 21.2 percent. Toyota SUV sales rose 12.9 percent.
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