Skip to content
Subscriber Only

U.S. Auto Industry Faces 2004-Style Triple Threat: Deutsche Bank

  • Rising rates, negative vehicle equity, used-car deflation loom
  • Doubts build that 17 million cars a year of demand sustainable
Video player cover image

Kia, Ford Report Biggest U.S. Auto Sales Declines

This week’s report about a shock stagnation in U.S. vehicle sales may be a sign that the auto industry is about to head back down the mountain at a rapid pace after a peak last year.

Deutsche Bank AG said March’s weak sales, coming as they did amid rising interest rates and a slide in used-vehicle prices, make for a potentially slippery outlook. Industrywide deliveries last month slowed to a seasonally adjusted annual pace of 16.6 million vehicles, confounding analyst expectations that the rate would accelerate to 17.2 million. Automakers set a record in the U.S. last year, with 17.6 million vehicles sold.