The US automotive industry sold 6,981,919 vehicles YTD through May compared to 7,122,017 units in the same period last year. In May 2017, 1,519,793 units were reported sold compared to 1,527,068 units in May 2016. This reflects a drop of 2 percent year-on-year for the five month period and a decline of 0.5 percent against May of last year. With May 2017’s 0.5 percent drop-off, sales have now declined, year-over-year, in five consecutive months.
According to WardsAuto, May’s seasonally adjusted annual rate of 16.6 million units was well below last May’s 17.1 million units, and brought the 5-month 2017 total to 16.9 million units compared with January-May 2016’s 17.2 million units.
According to Alec Guiterezz, senior analyst at Kelley Blue Book, continued softening could put sales in the high 16-million-unit range for the year, but other analysts believe that with a strong second quarter, the industry could move above the 17 million unit benchmark for the year.
Experts suggest that after seven straight years of record-setting numbers, the slowdown this year suggests that the market may have peaked, especially considering that GM's auto inventory hit a 10-year high. Potential production cuts or planned summer maintenance periods may be extended to reduce inventory levels.