US Auto Sales Continue to Decline in October

U.S. new-vehicle sales are expected to decline for a third consecutive month. Forecasts from the major analysts show sales falling 6 to 8 percent from a year ago. That would be a better performance than it appears because October has two fewer selling days than it did in 2015. Analysts said Hurricane Matthew also slowed sales in the Southeast early in the month.The forecasts translate to a seasonally adjusted, annualized selling rate of 17.7 million to 17.9 million. That compares to 17.74 million last month and 18.15 million a year ago.>Even the most optimistic of the four forecasts would result in year-to-date sales falling just below the first 10 months of 2015. That would be the first time 2016 has come up short of last year’s record-setting pace.Automakers are scheduled to report October sales tomorrow, on Tuesday, Nov. 1.

Incentives also are on the rise as demand flattens out. Both TrueCar and J.D. Power said incentive spending is down slightly from September but up at least 12 percent from a year ago.“As retail demand plateaus, automakers will be forced to make the critical decision to cut vehicle production or increase incentives,” Eric Lyman, TrueCar’s chief industry analyst, said in a statement. But he added: “There’s still gas left in the tank for automobile sales that should remain strong through the rest of 2016.Despite fears that the U.S. auto market is peaking.Detroit's truck wars are heating up with auto makers pledging billions of dollars for pickup truck and sport-utility vehicle production over the next three years  General Motors Co. , Ford Motor Co. and Fiat Chrysler Automobiles NV plan to invest heavily to boost output of existing models and make room for new ones. While Ford said this month it is trimming some pickup production, it still plans to add new SUVs to its lineup and reintroduce a midsize pickup by 2019.