2023 Q1 Car Market Report: All Major Brands Updated! The Homework Guy, Kevin Hunter With Elizabeth

In the world of automobiles, the first quarter of 2023 has brought with it a fascinating rollercoaster ride of events. General Motors (GM) has made an impressive comeback, Ford has gained momentum, but Toyota and Stellantis have found themselves in a slip. I'm Kevin Hunter, the "Homer Guy," and today I'm here with the amazing Elizabeth, the "Homework Gal," to explore the intriguing developments in the auto industry. Let's dive into this automotive adventure!

A Resilient Market

To kick things off, let's talk numbers. The seasonally adjusted annualized rate (SAR) of sales in March surpassed forecasts, coming in at an impressive 14.8 million, as reported by LMC Automotive. U.S. sales at General Motors and Ford Motor Company saw substantial growth in the first quarter. Meanwhile, Toyota Motors faced its third consecutive month of declining deliveries due to ongoing inventory recovery post the microchip shortage.

However, there's a silver lining – discounts and incentives, while still relatively low, are on the rise across the industry. This spells good news for new car buyers. The overall market surged by 8.6 percent in March, reaching 1.37 million cars and light trucks, marking the highest monthly tally since May 2021, according to LMC Automotive's estimates. This indicates a robust automotive market, but let's delve deeper into the specifics.

General Motors: On the Rise

GM has shown its resilience as it reported an 18 percent sales increase in the first quarter, nearly reaching 600,000 units. This remarkable growth is mirrored across GM's divisions, with Chevrolet up 16 percent, GMC up 7.6 percent, Buick up 9.9 percent, and Cadillac up 29 percent. U.S. retail sales at GM climbed 15 percent, while fleet volume, representing 25 percent of deliveries, surged by 27 percent in the last quarter. This marks the third consecutive quarter of remarkable growth for the company.

GM ended the first quarter with a robust inventory of 412,285 cars and light trucks, which remains unchanged from the end of the previous quarter. This abundance of inventory is poised to make way for manufacturer discounts and rebates, which is great news for potential car buyers.

Ford: Regaining Momentum

Ford has also made a triumphant return, bouncing back from a decline in the fourth quarter of 2022 with a solid 10 percent sales increase in the latest three-month period. This growth was driven by a 20 percent surge in pickup sales and a slight gain in SUV volume. In March, Ford's sales maintained their upward trajectory, rising by 7.5 percent, with the Ford division up 8.2 percent, despite Lincoln seeing a slight drop of 6.9 percent.

Ford concluded March with an inventory of around 400,000 cars and light trucks, a slight drop from the previous month. As we see these numbers, the potential for discounts and rebates looms large, promising exciting opportunities for car buyers.

Toyota: A Puzzling Decline

Toyota, known for its exceptional reputation, witnessed a 9.1 percent decline in March sales, with the Toyota division seeing a 12 percent dip while Lexus advanced by 12 percent. Speculation arises regarding whether Toyota is intentionally holding back. Interestingly, GM easily outsold Toyota by nearly 130,000 units in the first three months of 2023, relegating Toyota to the third position in quarterly sales.

The first quarter concluded with Toyota having 142,958 cars and light trucks in stock. The Toyota division accounted for 112,420 of these vehicles, and Lexus contributed 30,538 cars and light trucks, which indicates a 22-day supply. These figures raise questions about Toyota's strategy and whether it's poised for a comeback in the coming months.

Stellantis: An Ongoing Struggle

Stellantis, on the other hand, has been experiencing a slump, with first-quarter sales sliding by nine percent. This decline is particularly evident in Jeep, which witnessed a drop of 20 percent, and Ram, which fell by seven percent. However, smaller divisions such as Dodge and Chrysler saw some growth. Stellantis has been offering rising incentives and is working closely with its dealer network to adapt to evolving market conditions.

This situation has led to dealers across the country advertising rebates, making it an opportune time for potential buyers to explore options and grab a deal.

The Bright Spots

Amidst this dynamic landscape, there are bright spots. Honda Motor Company reported a rebound in U.S. sales, particularly at the Honda Division, with deliveries rising by 8.8 percent. American Honda's tight chip supply situation, primarily sourced from Inland China, has been challenging. However, the company appears to be overcoming these challenges.

Nissan, benefiting from strong Light Truck deliveries, snapped a streak of six straight quarterly declines with a 17 percent increase in the first quarter. Hyundai, Kia, and Subaru have consistently posted higher sales over eight consecutive months, leading the pack among Mass Market brands in the U.S.

As we round up this market update, it's clear that the automotive industry is ever-evolving, with each quarter presenting new challenges and opportunities. We'll keep a close eye on the road ahead as we continue to navigate the exciting world of cars.

And that's a wrap for today, friends! Thank you for joining us, and if you found this market update informative, don't forget to subscribe and ring the notification bell for future shows. We appreciate your support as we strive to serve truth and justice in the car business. Until next time, I'm Kevin Hunter, the "Homer Guy," signing off with the amazing Elizabeth, the "Homework Gal." Stay tuned for more exciting updates, and happy car hunting!