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BUSINESS A25
Tuesday 4 April 2017
US stocks fall as weak auto sales trouble investors
Trader Frank O’Connell works on the floor of the New York Stock Exchange. U.S. stocks started the closely linked to U.S. eco- 5,894.68. The Russell 2000
second quarter with a thud Monday after car makers reported disappointing March sales, a pos- nomic growth. index of small-company
sible warning about other types of spending. While stocks recovered stocks gave up 16.25 points,
most of their earlier losses, or 1.2 percent, to 1,369.67.
(AP Photo/Richard Drew) the weak car sales still sent Ford, Fiat Chrysler, Toyota
a chill through the market. and Honda all said their
MARLEY JAY of spending. But a late re- companies also tumbled. Steven Ricchiuto, chief overall sales decreased in
AP Markets Writer covery helped stocks avoid Spending by shoppers is a U.S. economist for Mizuho, March as passenger car
NEW YORK (AP) — U.S. bigger losses. critical part of economic said auto sales have been sales kept falling. GM re-
stocks started the sec- Stocks tumbled in morning growth and investors found a major part of the U.S. ported its sales were up
ond quarter with a thud trading after automakers themselves wondering if economy recently, and thanks to stronger SUV
Monday after car mak- including Ford and General spending will keep grow- if car sales fall, consumer sales, but its totals weren’t
ers reported disappoint- Motors said passenger car ing as it has in recent years. spending would also weak- as good as experts expect-
ing March sales, a possible sales slumped last month. Small companies slumped, en. That in turn might mean ed.
warning about other types Auto parts and rental car as their performance is manufacturers and other Auto sales have reached
companies won’t open as all-time highs in recent
many factories or hire as years,
many workers. but companies are offering
“If we’re starting to lose more cash, incentives, and
some of the momentum low-interest loans to draw
on autos, where is the mo- in buyers. Investors are get-
mentum going to come ting worried that compa-
from?” he said. nies will be stuck with ve-
The Standard & Poor’s 500 hicles they’ll have to sell for
index fell as much as 18 big discounts.
points around midday, Fiat Chrysler lost 52 cents,
but finished down just 3.88 or 4.8 percent, to $10.41
points, or 0.2 percent, at and General Motors stock
2,358.84. The Dow Jones fell $1.19, or 3.4 percent,
industrial average lost as to $34.17. Ford gave up 20
much as 145 points but cents, or 1.7 percent, to
wound up with a loss of $11.44.
13.01 points, or 0.1 per- Five of the eight worst per-
cent, to 20,650.21. The Nas- formers in the S&P 500 Mon-
daq composite shed 17.06 day came from the auto
points, or 0.3 percent, to industry. q
US auto sales slump in March for third month in a row
TOM KRISHER sica Caldwell, executive said incentives hit a March economy in a worst-case LaNeve said buyers are
AP Auto Writer director of industry analysis record, averaging $3,768 scenario, she said. loading out the trucks with
DETROIT (AP) — Passen- for the Edmunds.com car- per vehicle and the high- Yet even at Ford, which premium options, boost-
ger car sales plummeted buying website. “You can’t est amount since March of saw a 24 percent decline in ing average sale prices by
again in March, dragging have the other side of the 2009. In addition, cars and car sales, executives were $2,500 over a year ago.
U.S. auto sales to their third industry completely not trucks are sitting on dealer happy, largely because of “(Sport) Utilities and trucks
straight monthly decline, a performing well.” lots for an average of 70 a 10 percent increase in are trucks are very positive
strong indication that years Hyundai suffered the big- days, the highest level for sales of the F-Series pickup. in terms of our economics,”
of sales growth have come gest decline at 8 percent, any month since July of Vice President of Sales Mark he said.q
to an end. followed by Ford at 7.5 2009 during the sharp eco-
Sales for the month fell 1.6 percent, as popular car nomic downturn. Caldwell
percent to just over 1.55 models such as the Sonata predicts this year’s sales
million vehicles, surprising and Fusion suffered big de- will drop to 17.2 million, still
analysts who expected a creases. Fiat Chrysler sales strong but down from last
small increase. tumbled 5 percent, Toyota year’s record of 17.55 mil-
For now, anyway, the auto fell 2 percent and Honda lion. Through March, over-
industry isn’t worried. It’s just under 1 percent. But all sales were down 1.5 per-
making solid money selling Nissan sales rose over 3 per- cent.
reams of SUVs and trucks to cent, Volkswagen’s gained If automakers can’t reduce
consumers who are load- just under 3 percent and inventories, they’ll have to
ing up on expensive fea- GM posted an increase offer even more incentives,
tures. But some analysts see of just under 2 percent, all which will reduce industry
large inventories of cars as helped by SUV sales. profits. Even some truck
a looming problem. Car Drawing in buyers required and SUV inventories are
sales were down almost 11 a lot of cash, low-interest starting to climb, she said.
percent, while truck and loans and other incentives, Since vehicle values could
SUV sales rose 5.2 percent, however. Dealer stocks fall if demand falters, that
according to Autodata are growing because cars could mean an end to
Corp. “Trucks and SUVs, and trucks aren’t moving sweet lease deals for con-
although they did well, it’s off the lots as fast as they sumers, she said. That could
still hard to make up the did in the past. The LMC mean lower sales, produc-
lack of car sales,” said Jes- Automotive consulting firm tion cuts and a drag on the
