FADA Journal - April 2017

NADA Musings

NADA Sticks to 2017 US Sales Forecast of 17.1 Million

A 1.6 per cent decline in US new-vehicle sales in the first expected to negatively impact sales by 100,000-175,000 units,
quarter isn’t overly concerning for the National Automobile which was factored into the association’s original forecast.
Dealers Association (NADA). “Consumer demand for new vehicles continues to be very
NADA, which represents more than 16,500 US new car and strong,” said NADA Chairman Mark Scarpelli, whose dealership
light-truck dealerships, maintained its US sales forecast of 17.1 group holds Chevrolet, Kia and Chrysler-Jeep-Dodge-Ram
million vehicles for the year, which would be a 2.5 per cent franchises in the Chicago area. “Right now, it looks like we’re
decline in sales compared with the record 17.5 million sold in looking in a very positive direction.”
2016. Szakaly said that positive direction is expected to continue for
NADA Chief Economist Steven Szakaly said there are “some the foreseeable future, with no sign of “sales collapsing any
headwinds overall” in 2017, but “moderate” economic growth time in the next two, three years.”
and an expected tightening in financing and interest rate hikes Other forecasts
aren’t enough to deter sales from remaining above 17 million NADA’s 2017 sales forecast is in line with many analysts’
for a third consecutive year. expectations. Autotrader and Kelley Blue Book forecast sales
“What we’re looking at is still a very strong year,” he said. “As in the range of 16.8 million-17.3 million vehicles for this year,
far as the new-car part of the business, we are still very which would represent a 1 to 4 per cent decrease from 2016.
optimistic.” Edmunds.com is within those expectations with a forecast of
‘Very positive’ 17.2 million.
The overall US economy is expected to grow in 2017, with a LMC Automotive is among the more optimistic with a forecast
projected 2.6 percent growth in gross domestic product and of 17.6 million for the year, which would mark a 0.1 per cent
job growth of 150,000 to 180,000 a month. increase over last year and the third consecutive year of record
Szakaly said an expected tightening of credit for the year is sales.

March CPO Sales Just 0.3% Away From All-Time High

According to Autodata Corp, the industry in March turned For the quarter, AutoData indicated the Certified Pre-
the 2nd highest amount of Certified Pre-Owned (CPO) vehicles ever. Owned sales figure came in at 647,373 units, edging 0.1
per cent higher, compared to the first quarter of last year.
The information shared by Autodata Corp reveals that dealers The amount also was 0.8 per cent higher than the fourth
retailed 243,277 CPO units in March, off by just 0.3 per cent quarter of 2016.
year over year when the all-time sales record was established. Analysts pointed out that there were 27 selling days in March
That’s when the industry delivered 243,944 certified models. of this year and last year as compared to just 24 in February
of this year. The March sales figure computed into a daily
The March figure also soared past the CPO sales total recorded selling rate was 9,010.
during the previous month by 15 per cent.

Toyota Announces $1.33 Billion Investment in Kentucky Plant

The company is putting big money into one of its biggest US factories

Toyota is investing $1.3 billion to retool its sprawling Toyota says the upgrades amount to its biggest single
Georgetown, Kentucky, factory where its flagship Camry investment ever at an existing plant in the United States.
sedans are built. The factory-wide upgrade in Kentucky comes as Toyota is
The automaker said that no new factory jobs are being preparing for production of the revamped 2018 Camry
added, but the investment will sustain the existing 8,200 featuring a new exterior design, an upgraded interior and a
jobs at Toyota's largest plant, where nearly one-fourth new engine.
of all Toyota vehicles produced in North America are The Kentucky plant also assembles the Avalon and the Lexus
made. ES 350

53 April 2017