US auto sales fall for fifth straight month in May
DETROIT — U.S. auto sales fell for the fifth straight month in May, bolstering expectations for the first annual sales decline since 2009.
Some industry analysts lowered predictions for the year as General Motors, Fiat Chrysler, Hyundai and Toyota all reported May decreases compared with a year ago. Ford, Honda, Nissan and Volkswagen said their sales were up. The figures added up to just over 1.5 million vehicles sold and a 0.9 per cent decrease.
Tom Libby, an industry analyst with IHS Markit, said although economic fundamentals such as unemployment, consumer confidence, gas prices and interest rates all look good, sales still will fall this year because pent-up demand for new cars has been satisfied and many people have decided to keep their automobiles longer.
The industry posted annual sales increases from 2010 through 2016, a streak matched only in the 1920s, Libby said. Sales hit records of around 17.5 million during the past two years, so most people who needed a new car have already bought one, he said. “It’s very understandable that this would not continue,” said Libby, whose firm reduced its full-year sales forecast for 2017 from 17.4 million to 17.3 million.