US: record selling rate also delivers increased transaction prices

The US automotive industry has recovered from the dark age of the financial crisis and is now trending on a hut summer that has delivered outstanding seasonally adjusted selling rates, as well as high numbers when it comes to transaction prices. The latter are a good indicator that automakers are not revisiting sins of the past: rely on overproduction, sell high to rental car companies and other fleet operators or stuffing the dealers with excess inventory and deploying massive incentives. And now the dealers are calling in for higher inventory themselves, actually. New light vehicle deliveries jumped an incredible 16 percent last month to more than 1.4 million cars and light trucks, thanks in part to the Labor Day weekend boom sales that were traditionally the panache of August. But September also continued to see increased demand for pickups, crossovers and minivans thanks to available cheap credit and low gasoline prices. Most of the carmakers didn’t report positive sales, instead they reported double digit jumps: Ford with 23 percent, GM with 17 percent in terms of retail sales and Toyota, Nissan, Honda, FCA and Hyundai Kia taking home advances between 13 and 18 percent. Even crisis laden VW had its namesake brand post a smallish positive result. Such massive gains cannot be attributed to just one-time moves such as the Labor Day holiday or new vehicle launches. The seasonally adjusted annual selling rate was above the 17 million units mark for five straight months, with truck sales climbing 24 percent and taking up 50 percent of the market. Via Automotive News