Automakers Expect “Bloody” Sales This Summer in the US image

Foreign automakers say that US sales in the summer will be ‘bloody’ as car makers will fight for sales offering big incentives.

Last year auto sales in the US increased 13% to 14.5 million vehicles, reaching the highest level in the past 5 years. During the first four months of this year sales were up 6.9%, including the increase of 8.5% in May so far. Hyundai Motor America’s executive vice president of sales Dave Zuchowski says he expects sales to surpass 15.1 million.

“Profitability from the dealer perspective, from the (automaker) perspective, from the supplier perspective may be squeezed just because of this intensified level of competition,” Zuchowski said. “Summer’s going to be bloody. Everybody’s got inventory… I think it’s going to be very, very competitive.”

Bill Fay, Toyota Motor Sales USA vice president and general manager, predicts that US sales will end the year at around 15.3 million units, the same as Kia Motors America executive vice president for sales Tom Loveless. The Japanese automaker will introduce a few new models in the US during the second half of the year.

“I think it will be a hard-fought 15.3 — I think it will be extremely competitive,” Loveless said at the same discussion. “I think we will have incentives higher than any of us would like them to be.”

Mercedes-Benz expects to reach record sales this year too, as it prepares to introduce new models, such as the new S-Class later this year, and 30 new models in the following 7 years, “the biggest product offensive in its history”.

Source: The Detroit News