US auto sales likely to rise in October but impact of UAW strike looms – report
2023.10.25 11:39
© Reuters. FILE PHOTO: A view of cars on the road during rush hour traffic jam in San Francisco, California, U.S. August 24, 2022. REUTERS/Carlos Barria/File Photo
(Reuters) – U.S. auto sales are expected to rise in October but the outlook for the rest of the year remains uncertain owing to the auto workers strike at Detroit Three, a report from S&P Global Mobility showed on Wednesday.
“On the surface, with a projected SAAR (seasonally adjusted annual rate) result of 15.7 million units, October auto sales will be stronger than they appear,” said Chris Hopson, principal analyst at S&P Global Mobility.
New total light vehicle sales in October are estimated to be 1.22 million units, up 3.3% year-over-year, according to the report.
“Underlying pressure by way of still-notable vehicle affordability concerns, potential economic slowdown and specific instances of severely limited inventory levels are likely to be a drag on auto sales for the remainder of the year,” Hopson added.
Over 45,000 union members at Ford (NYSE:), General Motors (NYSE:) and Stellantis (NYSE:) are now on strike at some of the automakers’ key facilities, halting production of some popular SUVs and pickup trucks.
“As of the week ended October 22, nearly 150,000 units of vehicle production have been lost due to the respective plant strikes,” according to the report.
While the impact on sales has been limited in the month of September, production disruptions caused by the strike are expected to affect October sales for the Detroit Three and will likely be sustained in November, the report added.
