New vehicles are seen at a parking lot in the Port of Richmond, at the bay of San Francisco, California June 8, 2023. REUTERS/Carlos Barria Acquire Licensing Rights
Sept 28 (Reuters) – New vehicle sales in the United States are projected to rise for a sixth consecutive month in September on strong demand, according to an industry report, though the strike by United Auto Workers’ (UAW) union has clouded the outlook going forward.
U.S. new vehicle sales, including retail and non-retail transactions, are estimated to reach 1,309,900 units in September, a 13.8% jump from a year earlier, a joint report by J.D. Power and GlobalData showed on Thursday.
The impact of the UAW strike has had negligible effect on September sales, according to the report.
“However, depending on the duration and scope of the (work)stoppage, there could be disruption to sales results in October and beyond,” Thomas King, president of the data and analytics division at J.D. Power, said in a statement.
The ongoing labor strike, which began on Sept 15, between the UAW and automakers Ford (F.N), General Motors (GM.N) and Chrysler parent Stellantis (STLAM.MI), at some U.S. facilities of these companies, has threatened the supply of newer models.
Retail inventories could see a 36.5% jump in September from a year earlier, but would be still well below the pre-pandemic levels.
Dealer profits, squeezed by elevated interest rates, declined due to increased vehicle supply, with fewer vehicles being sold for higher than their sticker price.
Global sales for 2023 are expected to reach 87.9 million units compared with the previous estimate of 86.8 million units.
“The wildcards to the finish of 2023 are the U.S. market—which may be influenced by the ongoing UAW strike—and China, with a price war that is attracting more consumers into the new-vehicle market but is negatively affecting OEM margins,” said Jeff Schuster of GlobalData.
Reporting by Pratyush Thakur in Bengaluru
Editing by Vinay Dwivedi
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