According to analysts and industry executives when auto dealers reveal their reports for June, the results will not have any impact from Great Britain's June 23 decision to leave EU. Even with this sad news the job growth and consumer confidence remain strong and credit is freely available.
One company that will likely report that has lost sales market will be General Motors, it continues to wean itself from low-margin sales to rental agencies and concentrate on more profitable sales to consumers. The GM vice president of U.S. sales operations says that that he sees a seasonally adjusted annual rate of 17.1 million for the industry. Many Americans saw their retirement savings and other investments lose value in the immediate wake of the U.K's vote to leave European Union. Some of all these losses have been recovered in the past two days, but not all of them. It seems that the longer-term impact on the global economy will take months to unfold.
We are pretty sure that the trends that have played in auto sales earlier this year will continue. This May GM's shares of the U.S. new vehicle market has dropped from 17.7% to 16.6%. It's been estimated in a survey that GM and toyota will sell 1.3% and 1.1% fewer vehicles, than they did in June 2015. while Ford, Honda, Fiat, Nissan and Hyundai will post increases ranging between 6% and 8.2%. While we believe Hyundai, and Nissan will have increases, we aren't these convinced about Fiat after the later news on its Jeep defects, and those 260 crashes linked to FCA. In only a few days we'll find out if all of these predictions were right or wrong.
