As we've wrote earlier the U.S. auto sales have been weaker this year than expected, we felt it good after the May sales results got revealed and it seems like only GM will have a sales growth going forward, while the rest of the car manufacturers seem to go weaker. Many consumers are focusing on leases and that might be the main reason why auto sales cooled down this much and are only higher by only 1.8% year-to-date.
The Bank of America Analysts are concluding that the auto industry is entering the top of the eighth inning. One of these analysts named John Murphy says that the total 2016 U.S. auto sales expected are going to be 17.7 million down from a prior estimate of 18.2 million. Considering this year isn't one of the best for auto trading industry the more important question comes as we start to wonder about 2018 since the prior estimate was 20 million. Now the most probably auto sales in 2018 are going to reach only 18 million or even less.
Even though we've got some real-motivated results gave by a specialist, we still try to deny that U.S. cycle has reached its peak. The possibility that the auto industry will grind higher is still being considered. This is the perfect time for automotive companies to drive solid earnings and cash flow while an eventual downturn might happen. Automakers need to focus more on improving their sales mix by delivering more qualitative trucks and offering discounts.
