After weak March sales, concerns rise over US auto market outlook

Yesterday car dealers added to concerns about the state of the U.S. auto industry and how tough any downturn might be if its six-year recovery has ended. In a conference call with media and analysts, officials of the National Automobile Dealers Association said they expected sales of cars and light trucks in the United States to dip to 17.1 million vehicles this year, high by historical standards but below 2016’s record 17.55 million vehicles.

Investors are also watching rising interest rates, inventories of unsold vehicles and the generosity of profit-eroding discounts that automakers are offering to close deals. Those indicators are largely negative. Signs that the auto cycle is at its peak have weighed on the shares of Detroit automakers, casting a shadow over an industry central to President Donald Trump’s pledge to rebuild American manufacturing. Read more