Hurricane recovery helps boost U.S. September new auto sales
by Nick Carey
DETROIT (Reuters) - Major automakers on Tuesday posted higher U.S. new vehicle sales in September as consumers in hurricane-hit parts of the country replaced flood-damaged cars, extending a rally in their shares that began when Hurricane Harvey hit southeast Texas in late August.
The seasonally adjusted annualized rate of U.S. car and light truck sales in September rose to 18.57 million units from 17.72 million units a year earlier, according to Autodata Corp, which tracks industry sales.
While U.S. sales rose beyond the storm zones, according to automakers and dealers, much of the September gains came after Hurricane Harvey hit Texas. Replacing cars during the recovery in southeast Texas and Florida will boost U.S. new and used auto sales through at least November, according to industry consultants.
Up to 500,000 cars were damaged or destroyed during Harvey and another 200,000 cars during Irma, according to industry estimates.
GM’s sales jumped nearly 12 percent versus September 2016 as a 43 percent increase in sales of crossovers and a 10 percent rise for pickup trucks offset an 11 percent decline for passenger cars.
The No. 1 U.S. automaker’s inventory fell to 76 days’ supply last month from 88 days in August, a positive development since analysts have blamed the automaker for much of the industry’s oversupply of unsold new vehicles. GM is moving closer to its goal of around 70 days’ supply by the end of the year.
Industrywide, new car sales in the Houston area, the fourth-most populous U.S. city, soared 109 percent in the three weeks after Hurricane Harvey compared with the three weeks before the storm, according to car shopping website Edmunds.
‘STRONG END OF THE MONTH’
Ford sales rose 8.7 percent in September, with those to consumers up 4.4 percent and lower-margin fleet sales up 25.1 percent. F-Series pickup truck sales soared 21.4 percent, benefiting from the popularity of pickups in Texas.
Since Harvey made landfall, GM stock has risen 24 percent, Ford is up 16 percent and Fiat Chrysler Automobiles NV has rocketed 44 percent.
Source: Reuters
http://www.reuters.com/article/us-usa-a ... r%20Update