Several major automakers reported steep declines in U.S. sales for September, a slowdown that comes amid shifts in North American trade policy and the looming threat of tariffs on European and Japanese auto imports, The Wall Street Journal reports.
The industry is expected to post a 7% drop in sales in September compared with the same year-ago period when full industry results are tallied. Analysts attribute the drop to one fewer selling day this month and a surge in sales last September as buyers rushed out to replace vehicles damaged from Hurricane Harvey and Irma.
Ford Motor Co.’s U.S. sales were down 11.3%, while Toyota Motor Corp. and Nissan Motor Co. also reported double-digit declines. General Motors Co., which only reports sales on a quarterly basis, said its sales in the third quarter were down 11.1% over the prior year. Fiat Chrysler Automobiles was one of the only major automakers to report a gain last month, with U.S. sales up 15% compared with the same-year ago period, an increase driven by strong demand for its Jeep sport-utility brand.
The weaker sales results come as the U.S. auto industry is already facing cost pressures on a number of fronts. New U.S. tariffs on imported steel and aluminum have caused prices on those materials to climb, denting bottom lines, and a new North American trade deal could increase costs for some car makers whose cars aren’t compliant with the new duty-free rules.
