Analysts at JD Power say that the return of some incentive programs has not been enough to drive more consumers into showrooms, as May new-vehicle retail sales continue to exhibit weakness through the third week of the month.
JD Power says that the retail selling rate in May is expected to come in below 9.5m units for the first time since August 2010, while the seasonally adjusted annualised rate (SAAR) for total light-vehicle sales is projected to be below 12m units.
“As lower incentive levels, high gas prices and inventory shortages plague the month-to-date sales rate, light-vehicle sales in May have been unable to shake the slowdown from the stronger pace of the first four months of 2011,” said Jeff Schuster, executive director of global forecasting at JD Power and Associates.
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“May’s overall performance will hinge on how strong Memorial Day weekend sales were, but heading into this past weekend, the selling pace was indicating a SAAR closer to 11.5m units.”
