Auto Sales Hit The Brakes In 2017: ETFs & Stocks In Focus
Zacks Investment Research | Jan 03, 2018 11:01PM ET
The seven-year sales growth streak for the auto industry hit the brakes in 2017 as it suffered its first annual sales decline since the financial crisis. Though sales dropped 1.8% from the last year to 17.2 million vehicles, 2017 still marks the fourth-best sales year in U.S. history. This is because this is the first time that the industry has cleared the 17-million mark for three consecutive years.
Of the six major American and Japanese automakers, Fiat Chrysler (NYSE:F) posted the biggest sales decline of 8.2%, followed by modest declines of 1.3% for General Motors (NYSE:GM) , 1.1% for Ford Motor (NYSE:F) and 0.6% for Toyota (NYSE:TM) . Nissan Motor (OTC:NSANY) and Honda (NYSE:HMC) sales were up 1.9% and 0.2%, respectively.
A strong economy, low unemployment, increasing consumer confidence, higher spending, fuel-efficient and technologically enriched vehicles, and relatively low oil prices will continue to fuel the industry. Additionally, the tax reform will provide a lift to U.S. sales but at the same time also encourage rate hikes, which will make financing of new vehicles expensive (read: Zacks Investment Research
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