Global| May 02 2008U.S. Higher Gasoline Prices Weigh on Light Vehicle Sales
by:Tom Moeller
|in:Economy in Brief
Summary
U.S. sales of light vehicles during April dropped another 4.8% m/m to a 14.39M unit annual selling rate, according to the Autodata Corporation. So far this year vehicle sales have fallen 11.1% while, since December, gasoline prices [...]
U.S. sales of light vehicles during April dropped another 4.8% m/m to a 14.39M unit annual selling rate, according to the Autodata Corporation. So far this year vehicle sales have fallen 11.1% while, since December, gasoline prices have risen 20.9%.
Higher gas prices have weighed heaviest on sales of domestically made light trucks. They are relatively fuel inefficient and April sales fell 8.5% m/m. That brought the decline this year to 17.5%. In addition, sales of U.S. made cars fell 2.3% in April and they are down 9.4% in 2008. Overall, sales of domestically made light vehicles in April were at the lowest level since 1992.
Sales of imported light vehicles fell a relatively moderate 2.1% m/m 4.00M units after a 7.4% March increase. Despite the April decline, the latest level of imported vehicle sales remained near the record. Sales of imported autos fell just 0.7% after the 11.5% surge in March. So far this year sales of imported cars rose 1.6%. Showing that sales of imported light trucks weren't immune to the softening of overall consumer spending, they fell last month by 4.6% and the decline lowered sales so far this year by 10.5%.
Import's share of the U.S. light vehicle market rose to another record level of 27.8%. (Imported vehicles are those produced outside the U.S. and does not include vehicles with the nameplate of a foreign manufacturer produced within the U.S.) Imports' share of the U.S. car market rose to 35.9% and the share of the light truck market was 19.3%; both records and more than double the shares ten years ago.
| Light Vehicle Sales (SAAR, Mil. Units) | April | March | Y/Y | 2007 | 2006 | 2005 |
|---|---|---|---|---|---|---|
| Total | 14.39 | 15.11 | -11.7% | 16.18 | 16.55 | 16.96 |
| Autos | 7.38 | 7.51 | 0.2% | 7.58 | 7.77 | 7.65 |
| Domestic | 4.73 | 4.84 | -3.1% | 5.07 | 5.31 | 5.40 |
| Imported | 2.65 | 2.67 | 6.7% | 2.51 | 2.45 | 2.25 |
| Light Trucks | 7.02 | 7.61 | -21.4% | 8.60 | 8.78 | 9.32 |
| Domestic | 5.67 | 6.19 | -23.9% | 7.12 | 7.42 | 8.12 |
| Imported | 1.35 | 1.42 | -9.0% | 1.48 | 1.37 | 1.20 |
Tom Moeller
AuthorMore in Author Profile »Prior to joining Haver Analytics in 2000, Mr. Moeller worked as the Economist at Chancellor Capital Management from 1985 to 1999. There, he developed comprehensive economic forecasts and interpreted economic data for equity and fixed income portfolio managers. Also at Chancellor, Mr. Moeller worked as an equity analyst and was responsible for researching and rating companies in the economically sensitive automobile and housing industries for investment in Chancellor’s equity portfolio. Prior to joining Chancellor, Mr. Moeller was an Economist at Citibank from 1979 to 1984. He also analyzed pricing behavior in the metals industry for the Council on Wage and Price Stability in Washington, D.C. In 1999, Mr. Moeller received the award for most accurate forecast from the Forecasters' Club of New York. From 1990 to 1992 he was President of the New York Association for Business Economists. Mr. Moeller earned an M.B.A. in Finance from Fordham University, where he graduated in 1987. He holds a Bachelor of Arts in Economics from George Washington University.
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