WESTLAKE VILLAGE, Calif., Aug.
21 2014 /PRNewswire/ -- Summer is shopping season when it
comes to new vehicles and August is no exception, as new-vehicle
retail and total sales are on pace to surpass May for
the highest levels in 2014, according to a monthly sales
forecast developed jointly by J.D. Power and LMC Automotive.
Retail light-vehicle sales are projected to hit 1.3 million
units and total light-vehicle sales are expected to reach nearly
1.5 million in August 2014, both a 3
percent increase on a selling day adjusted basis, compared with
August 2013.
Retail Light-Vehicle Sales
The seasonally adjusted annualized rate (SAAR) for retail sales
in August 2014 is expected to be 13.6
million units, an increase of more than 100,000 units from the
selling rate in July 2014. The August
SAAR marks the sixth consecutive month where the SAAR has exceeded
13 million. Retail transactions are the most accurate measure of
true underlying consumer demand for new vehicles.
August sales will benefit from the inclusion of the Labor Day holiday in the month's sales results.
Labor Day is traditionally the
biggest single sales day of the year as consumers take advantage of
the holiday and model year-end sales promotions as well as the
availability of the 2015 model-year vehicles arriving in showrooms.
John Humphrey, senior vice
president of the global automotive practice at J.D. Power, notes
that continued high levels of consumer expenditures on new vehicles
demonstrate the continuation of the overall health of the
industry.
"We expect consumer spending on new vehicles in August to
approach $39 billion, the highest
level on record for the month of August and second-highest month
ever behind July 2005 ($39.7 billion)," said Humphrey. "The record
consumer spending is fueled by both high sales volumes and high
transaction prices."
The average new-vehicle retail transaction price in August 2014 is $29,300, a record high for the month surpassing
$28,898 set in August 2013.
Total Light-Vehicle Sales
Total light-vehicle sales in August
2014 are expected to surpass July sales by more than 60,000
units. Following several months of lower-than-expected fleet
volume, fleet sales in August are expected to reach 162,000 units,
or 11 percent of total light-vehicle sales, consistent with the
level a year ago.
J.D. Power and LMC
Automotive U.S. Sales and SAAR Comparisons
|
|
August
20141
|
July
2014
|
August
2013
|
New-Vehicle Retail
Sales
|
1,331,300
units
(3% higher than
August 2013)2
|
1,227,881
units
|
1,335,085
units
|
Total Vehicle
Sales
|
1,493,200
units
(3% higher than
August 2013)
|
1,432,938
units
|
1,500,624
units
|
Retail
SAAR
|
13.6 million
units
|
13.5 million
units
|
13.7 million
units
|
Total
SAAR
|
16.5 million
units
|
16.4 million
units
|
15.9 million
units
|
1Figures
cited for August 2014 are forecasted based on the first 14 selling
days of the month.
2The percentage change is adjusted based on the number
of selling days in the month (27 days in August 2014 vs. 28 days in
August 2013).
|
Sales Outlook
LMC Automotive is maintaining its forecast for U.S. auto sales
in 2014 at 13.5 million units for retail and 16.3 million units for
total light-vehicle sales, both 5 percent increases from 2013
levels.
"As a very robust summer selling season winds down, optimism
continues in the auto industry for the remainder of 2014, with
expectations of economic growth beginning to catch up to the growth
in autos," said Jeff Schuster,
senior vice president of forecasting at LMC Automotive. "As
we look at scenarios for 2015 light-vehicle sales, external
factors, including global conflicts and capital flight from
emerging markets, account for the majority of the risk to further
and expected growth in the U.S."
North American Production
Bolstered by reduced factory shutdowns, North American
light-vehicle production in July 2014
totaled 1.2 million vehicles and a 17 percent increase compared
with July 2013. Total production
through July 2014 is at 9.7 million
units, nearly 5 percent or 400,000 units higher than it was for the
same period in 2013.
Manufacturers are continuing to manage inventory with days'
supply remaining in the normal range of 60-65 days, as August began
at a 62 day supply. With inventory levels in check, and sustained
positive outlook for local and export demand for the remainder of
the year, LMC Automotive is maintaining its 2014 North American
production forecast at 16.8 million units.
About J.D. Power
J.D. Power is a global marketing information services company
providing performance improvement, social media and customer
satisfaction insights and solutions. The company's quality and
satisfaction measurements are based on responses from millions of
consumers annually. Headquartered in Westlake Village, Calif., J.D. Power has
offices in North/South America,
Europe and Asia Pacific. For more information on car
reviews and ratings, car insurance, health insurance, cell phone
ratings, and more, please visit www.JDPower.com. J.D. Power is a
business unit of McGraw Hill Financial.
About McGraw Hill Financial
McGraw Hill Financial is a leading financial intelligence
company providing the global capital and commodity markets with
independent benchmarks, credit ratings, portfolio and enterprise
risk solutions, and analytics. The Company's iconic brands include
Standard & Poor's Ratings Services, S&P Capital IQ, S&P
Dow Jones Indices, Platts, CRISIL, J.D. Power and McGraw Hill
Construction. The Company has approximately 18,000 employees in 30
countries. Additional information is available at www.mhfi.com.
About LMC Automotive
LMC Automotive is the premier supplier of automotive forecasts
and intelligence to an extensive client base of automotive
manufacturer, component supplier, logistics and distribution
companies, as well as financial and government institutions around
the world. LMC's global forecasting services encompass automotive
sales, production and powertrain expertise, as well as advisory
capability. LMC Automotive has locations in the United States, the UK, France, Germany, China Japan and Thailand and is part of the Oxford, UK-based LMC group, the global leader
in economic and business consultancy for the agribusiness
sector. For more information please visit
www.lmc-auto.com.
Media Relations Contacts
John Tews; J.D. Power;
Troy, Mich.; 248-680-6218;
media.relations@jdpa.com
Emmie Littlejohn; LMC Automotive;
Troy, Mich.; 248-817-2100;
elittlejohn@lmc-auto.com
No advertising or other promotional use can be made of the
information in this release without the express prior written
consent of J.D. Power or LMC Automotive.
www.jdpower.com/corporate www.lmc-auto.com
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SOURCE J.D. Power; LMC Automotive