Worldwide Auto Sales in Decline
A number of major car manufacturers around the world are seeing a noticeable drop in production and sales, raising the possibility that a long expected slowdown in auto sales is underway.
Lower-than-expected bottom lines in all global markets, especially in China and Europe, impacted third-quarter results and outlooks for car brands and their suppliers.
Visteon Corp., maker of instrument clusters, audio and other vehicle accessories, said that its revenue fell 11 percent in the third quarter. Global auto parts company Aptiv reported that its net income for the same period fell by 44 percent, causing the company to trim its full-year revenue forecast. Automotive seat manufacturer Lear Corp. saw its third-quarter revenue fall by 2 percent and net income by 15 percent.
Some of the reasons cited for the downturn include lowered sales in China, the implementation of new international tariffs, massive flooding in Japan, and a sudden shift in consumer interest from cars to light trucks.
Around the USA, dealerships are experiencing double-digit drops in auto sales percentages.
Meanwhile, the local automotive industry is expecting a 14-percent decline in sales this year, as the Tax Reform for Acceleration and Inclusion (TRAIN) law, high inflation, and other economic factors stunted industry growth.