Car sales down in US; SUVs up

US car sales fell slightly in February, despite heavy dealership discounts, according to sales data released today.   February sales were mixed across the major car makers in America. GM sales increased 4.2 per cent, and Nissan grew 3.5 per cent. Honda also saw a slight sales gain of 2.6 per cent, led by a 12 per cent surge in SUVs and utes. Volkswagen sales increased 12 per cent, Subaru’s sales rose 8.3 per cent, and Mercedes-Benz sales were up 6.9 per cent. Hyundai remained static, with no sales growth or decline compared to last February. Ford sales, however, declined four per cent overall as sedan and hatchback sales dropped 24 per cent. Toyota sales fell 7.3 per cent on the back of a 15 per cent decrease in Camry sales. Fiat Chrysler reported a 10 per cent drop in sales, with its large-volume Jeep SUV brand dropping 15 per cent. Kia sales fell the furthest proportionally, with sales down 14.2 per cent compared to February 2016. Experts predicted the demand for cars, SUVS and utes to drop compared to February last year. Sales rose one per cent, however, triggering a rise in shares for GM, Ford, and Fiat Chrysler. Despite the rise, analysts are still cautious. Discounts hit 10 per cent of the average selling price for February as car makers tried to unload vehicles onto the market. "With the industry at 10 percent you are in a push market," said Mark Wakefield, head of the North American automotive practice for consultancy AlixPartners, told Reuters. A push market means manufacturers are pushing discounted vehicles onto consumers, rather than responding to the pull of demand. The challenge, Wakefield added, is for car makers to avoid over-producing vehicles or cutting profit margins too thin. Sales of SUVs and utes continue to rise, which means higher profits for the industry. Ford US sales chief Mark LaNeve said in a statement the company sold 65 per cent SUVs and utes and 35 per cent cars.