AFP, Chicago :
Auto makers offered big discounts over the Memorial Day holiday, but the response from US car buyers in May was not enough to reverse months of sales declines.
After seven years of gains, there were further signs US car sales have plateaued, analysts said.
Monthly sales data showed the industry sold six percent fewer vehicles than in April and one percent fewer than in May 2016, with a total of 1.5 million vehicles, according to Autodata.
The disappointing numbers were despite heavy incentives to lure buyers into showrooms and even as truck and SUV sales surged.
Total sales last month fell to a seasonally-adjusted annual rate of 16.58 million units, compared to 17.17 million a year ago, Autodata reported.
The biggest US car maker, GM, saw its sales fall 1.3 percent last month compared to the year-ago period, while the North American arm of Fiat Chrysler (FCA US) saw a one percent decline, and Toyota sales fell 0.5 percent.
Ford reported a 2.2 percent increase, but it was attributable to more fleet sales, purchases by companies and government agencies, rather than consumer purchases from dealer lots.
Nissan sales rose three percent as it offered deep discounts, including a $10,000 incentive on its Titan truck and zero percent financing on a number of other models, according to industry analyst Michelle Krebs of Autotrader.
Other car companies also offered big discounts to encourage consumers to buy. Average incentive spending reached $3,583 per vehicle, a record for May, according to the research firm JD Power.
As the industry enters the busy summer selling season, dealerships will be trying to clear out older inventories as 2018 models debut, so continued aggressive pricing is likely, Krebs said.
“We anticipate we’ll see more of that,” she said, adding that car makers also were likely to slow production.
Auto makers offered big discounts over the Memorial Day holiday, but the response from US car buyers in May was not enough to reverse months of sales declines.
After seven years of gains, there were further signs US car sales have plateaued, analysts said.
Monthly sales data showed the industry sold six percent fewer vehicles than in April and one percent fewer than in May 2016, with a total of 1.5 million vehicles, according to Autodata.
The disappointing numbers were despite heavy incentives to lure buyers into showrooms and even as truck and SUV sales surged.
Total sales last month fell to a seasonally-adjusted annual rate of 16.58 million units, compared to 17.17 million a year ago, Autodata reported.
The biggest US car maker, GM, saw its sales fall 1.3 percent last month compared to the year-ago period, while the North American arm of Fiat Chrysler (FCA US) saw a one percent decline, and Toyota sales fell 0.5 percent.
Ford reported a 2.2 percent increase, but it was attributable to more fleet sales, purchases by companies and government agencies, rather than consumer purchases from dealer lots.
Nissan sales rose three percent as it offered deep discounts, including a $10,000 incentive on its Titan truck and zero percent financing on a number of other models, according to industry analyst Michelle Krebs of Autotrader.
Other car companies also offered big discounts to encourage consumers to buy. Average incentive spending reached $3,583 per vehicle, a record for May, according to the research firm JD Power.
As the industry enters the busy summer selling season, dealerships will be trying to clear out older inventories as 2018 models debut, so continued aggressive pricing is likely, Krebs said.
“We anticipate we’ll see more of that,” she said, adding that car makers also were likely to slow production.
