Sales of new cars, trucks expected to rise in November
John Porretto, Associated Press
11/28/2003
DETROIT — U.S. sales of new cars and trucks are expected to rise in November from last month and a year ago thanks to hefty showroom bargains, which are likely to continue for the remainder of the year.
"The pickup from the slowdown in October reflects an increase in incentives late in the month just in time for the long Thanksgiving weekend," Merrill Lynch analyst John Casesa says in a research report.
Analysts expect those deals to increase in December — as they did last year — as automakers try to meet year-end sales targets.
Major automakers report November auto sales Dec. 2.
Casesa predicts November volume will be up 5 percent over the year-ago period. He expects GM to be up 10 percent, Ford up 5 percent and DaimlerChrysler’s domestic brands down 5 percent, hurt by a mid-month incentive push at GM, the world’s largest automaker.
Casesa said non-Big Three automakers likely will outperform the overall market and notch a slight market share gain in November.
"November, however, will likely be just a prelude to a December blowout," he said.
Goldman Sachs analyst Gary Lapidus predicts November sales to be up 8 percent from a year ago. He also anticipates the domestic arms of Toyota Motor Corp. and Nissan Motor Co. to continue their strong momentum, up 13 percent and 16 percent, respectively.
"Any November forecast should be published with the caveat that Thanksgiving weekend contributes a large percentage of the volume," Lapidus said in a research report.
Edmunds.com, which provides online vehicle buying information, said that average incentive spending in the United States was $2,521 per vehicle last month, 31 percent above the year-ago period but down 3.9 percent from September.
Incentive spending among the Big Three fell 4.8 percent from September to $3,445 a vehicle. At the same time, European automakers spent $1,693 per vehicle, Korean companies spent $1,666 and Japanese brands spent $931, according to Edmunds.com.
