The prospect of a sharp rebound in second-quarter GDP helped underwrite May’s solid results, and indicates June should post a still-healthy 16 million-plus SAAR, even if some of its thunder was stolen in the prior month.
A red flag to watch for is extended shutdowns beyond traditional summer downtimes, especially at Ford, Fiat-Chrysler and General Motors. Other automakers could add downtime, but most likely would slow production.
With Subaru understocked in the segment, nearly all automakers selling midsize cars, including Ford, GM, Honda, Hyundai, Kia, Mazda, Nissan and Toyota, could withstand some trimming to inventory in the segment.
Inventory of domestically made LVs is where most of March’s excess inventory exists. There could be some production slowdowns, but higher retail incentives in place in March are likely to continue in April, and possibly increase.
GM’s March deliveries rose a respectable 8.1% from year-ago, but its share fell to one of its lowest ever for any month to 16.7%. The drop coincided with widely publicized recalls that occurred during the month.
The knowledge gap already could be affecting sales of advanced-technology vehicles, which last year accounted for 3.5% of the nearly 17 million cars and trucks sold in the U.S., according to WardsAuto data....More
“Logically, Cadillac is not disconnected from GM,” the longtime luxury executive says. “The way we want to organize the business in the future is that Cadillac will own the entire process, all the things that touch Cadillac.”...More