GM Motors, Ford miss estimates as car models plunge despite huge discounts

Bloomberg

General Motors Co. and Ford Motor Co. reported US sales that missed estimates as heavy incentive spending failed to keep struggling sedan and compact models from continuing their plunge.
Deliveries rose 1.6 percent for GM and declined 7.2 percent for Ford last month, both trailing analysts’ projections, and Honda Motor Co. reported a surprise drop. Sales of the Chevrolet Malibu and Ford Fusion family cars each plunged by more than 35 percent.
The early results cast doubt on estimates that industrywide U.S. auto sales would rise in March compared with 2016’s weakest month, when results were depressed by the early Easter holiday. Automakers are using heavy discounts to trim inventory that’s swelled to the highest level in more than a decade.
“Sales are under forecast and there were a lot of incentives during the month,” Michelle Krebs, an analyst with Autotrader.com, said by phone. “Before long, we will see more production cuts.”
GM sees the the industry’s annualized sales pace, adjusted for seasonal trends, accelerating to 17 million for the month, trailing analysts’ estimates for a rate of 17.2 million. The rate was 16.7 million a year earlier.
GM shares fell 3 percent to $34.30 as of 9:51 a.m. New York time. Ford was down 2 percent to $11.41.
“Many automakers are looking for signs of market stability as consumers continue to head towards trucks and SUVs,” Jeff Conrad, senior vice president of Honda’s U.S. sales unit, said in a statement. Deliveries of the Accord sedan slumped 12 percent.
Nissan Motor Co. sales rose 3.2 percent, beating analysts’ estimates for a 2.8 percent gain. Rogue crossover deliveries surged 43 percent in March, as the model continues to outsell the longtime leader within the segment, Honda’s CR-V.
Fiat Chrysler Automobiles NV may report sales growth of about 0.4 percent as it pares fleet sales and begins North American production of the Jeep Compass.