General Motors and Ford post drops in sales

Two of the biggest automakers in the US, General Motors and Ford, posted declines in August sales as the industry appears to be cooling off after the highs of early 2016.

General Motors sold 256,429 cars during the period, down 5.2% from the same period last year. Its flagship Chevrolet brand slipped 3.9%.

Ford saw an even bigger drop in its sales year-on-year in August, selling 8.4% less than a year ago.

Analysts had expected a slowdown in the car industry during the month, with estimates of declines between 2% and 2.5% for the industry as a whole being touted. It had previously been keeping up with the record high of 17.5m vehicles in 2015.

Kurt McNeil, vice president of Sales Operations for GM, said that "our retail strength is reflected in our record ATPs (Average Transaction Price) in August which were up more than $1,600 from last month and nearly $5,800 above the industry average".

GM's chief economist also played down the figures, as he affirmed that the industry was still set for a record year.

"All the economic factors continue to point toward a strong second half of the year and another potential record year for the industry," said Mustafa Mohatarem.

Despite Ford's overall drop, the company pointed to its strong sales of its luxury Lincoln range, which rose 7% in the period.

"Strong sales of high-end Lincoln vehicles and Ford SUVs also helped us continue outpacing the industry in average transaction pricing, which increased $1,200 versus a year ago," said Mark LaNeve, Ford vice president.