Chilly Weather Stalls February Auto Sales; Fleet Sales Take The Hit

The big chill of the so-called Polar Vortex created a big stall in auto sales last month. Based on initial reports by General Motors Company, Ford Motor Company, Chrysler Group, and the other car companies, auto sales looked like they were flat to just slightly higher in February compared to the same month a year earlier. Automakers estimated they sold about 1.2 million vehicles in the U.S. last month, about a one percent gain.

Sales to fleet customers -- rental car companies, commercial users, and government agencies -- plunged ten percent as winter weather delayed a portion of the orders. Those sales are expected to rebound in March, the car company said.

Small sport-utility vehicles, and four-wheel and all-wheel drive vehicles sold best in February, in part because they were they types of autos best matched to the severe winter conditions in much of the nation, automakers said. GM said its U.S. sales fell one percent to 222,104 vehicles last month compared with February a year earlier. Ford sales fell six percent to 183,947 vehicles.

Autos sold well in the regions not impeded by the weather issues.

Chrysler, which has a high percentage of truck and SUV models, did the best of the domestic auto companies, with sales that rose eleven percent to 154,866 vehicles, the company’s best February sales since 2007.

Karl Brauer, Senior Analyst at Kelley Blue Book said, "Most of the factors that have driven auto sales over the past twelve months are still in place, but if consumer activity doesn’t pick up in the next few weeks we’ll likely see an aggressive, industry-wide incentive program that could hurt profitability."

Back to NAFA Connection