- US auto sales numbers for October will roll in throughout Wednesday.
- September was the strongest month of this year for the auto companies. They benefitted as people replaced cars that were salvaged by recent hurricanes.
- This bump could persist for a few more months. Also, end-of-year incentives for buyers could boost sales in November and December.
Automakers on Wednesday are reporting their sales results for October.
They surprised in September with the best month of sales so far this year, even though there were concerns that the market had hit a plateau. Sales rose at a seasonally adjusted annual rate of 18.57 million units according to Autodata, the first year-on-year increase in 2017.
Analysts forecast an increase by 17.50 million in October, down 2% year-on-year, according to Bloomberg.
Here’s the latest:
- Fiat Chrysler: -13% (-12% forecast)
The two hurricanes that hit Texas and Florida salvaged many cars and created the need to replace them. This bump is likely to remain through the end of the year, adding 200,000-500,000 vehicle sales per month, according to Evercore ISI.
Outside of this one-time boost, carmakers have benefitted from a shift in consumers’ preference towards more profitable pickups and crossovers instead of cheaper sedans.
Carmakers could get a seasonal boost from year-end product launches and promotions around Black Friday, Christmas and the new year.