Japanese Makers Stumble in the U.S. -- WSJ

By Patrick Thomas 

This article is being republished as part of our daily reproduction of WSJ.com articles that also appeared in the U.S. print edition of The Wall Street Journal (October 2, 2019).

Major Japanese auto makers reported a drop in U.S. vehicle sales for September as the American car market's historic run tapers off.

Toyota Motor Corp., Nissan Motor Co. and Honda Motor Co. all posted double-digit-percentage sales declines from a year earlier.

Two fewer selling days and an early Labor Day holiday were expected to slow down auto sales, but the decline was greater than industry analysts had expected.

Toyota said Tuesday that it sold 169,656 vehicles in its latest month, a decrease of nearly 17% on a volume basis and a decline of 9% on a daily selling rate, compared with the same period a year earlier. Analysts at Edmunds had expected the company to sell 180,595 vehicles for the month.

Honda reported its U.S. sales fell 14% to 113,925 vehicles, below the roughly 120,000 that analysts were expecting. Nissan reported its U.S. sales fell about 18%, slightly better than the 20% drop that was expected. Nissan's falling sales come as it searches for a new chief executive who the company hopes will bring a fresh outlook to the troubled car maker.

U.S. vehicle sales this year are projected to be around 17.1 million, according to Edmunds, slightly lower than the past few years. Rising car prices and higher interest rates dulled demand in the first six months of 2019.

Detroit auto makers General Motors Co. and Ford Motor Co., as well as Fiat Chrysler Automobiles NV, recently ended their long-term practice of reporting monthly U.S. sales numbers, although most major car companies still disclose the results each month. The companies now report their U.S. sales quarterly.

Car prices have been growing rapidly as new technological and safety features, such as larger and more sophisticated multimedia displays, have made basic cars more expensive. U.S. consumers have also veered toward pricier rides such as sport-utility vehicles, as demand for minivans fades.

While sales struggled in September, Edmunds analyst Jeremy Acevedo said he is optimistic sales will rebound in October and the rest of 2019. "September was a down month that was expected to be down," he said.

Write to Patrick Thomas at [e-mail]

(END) Dow Jones Newswires

October 02, 2019 02:47 ET (06:47 GMT)

Copyright (c) 2019 Dow Jones & Company, Inc.