May U.S. Auto Sales Slip Below 2010 Levels; SAAR Falls Below Standard & Poor's Full-Year Expectations Jun 11

Standard & Poors, June 2011

Abstract
Light-vehicle sales declined 3.9% from sales in May 2010, as the seasonally adjusted annualized rate (SAAR) of sales came in at 11.8 million units (according to Ward's AutoInfoBank)--a significant 10.5% below the SAAR in April 2011 (see chart 1). In Standard & Poor's Ratings Services' opinion, lower production and inventories of vehicles following the March disaster in Japan, in combination with the recent experience of higher gasoline prices, which were up nearly 40% since last May, were the main reasons for the lower sales rate. As we expected, the SAAR for May reflected higher demand for smaller, more fuel-efficient cars. May's SAAR was well below our current expectation of 12.9 million units for the full year. We believe this could...

Companies mentioned in this report are:
- Chrysler Corp.
- Ford Motor Co.
- Renault S.A.
- Nissan Motor Co. Ltd.
- Daimler AG
- Honda Motor Co. Ltd.
- Toyota Motor Corp.
- Fiat SpA
- Peugeot S.A.
- Volkswagen AG
- BMW AG
- Tata Motors Ltd.
- Hyundai Motor Co.
- Mitsubishi Motors Corp.
- Kia Motors Corp.
- Chrysler Group LLC
- General Motors Co.

Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.

Research Type: Commentary
Criteria articles describe the thought process and methodology Standard & Poor's analysts use in determining ratings. These commentary pieces discuss both the quantitative (economic and financial) and qualitative (business analysis and caliber of management) aspects of the analysis, as well as legal issues.

- Chrysler Corp.
- Ford Motor Co.
- Renault S.A.
- Nissan Motor Co. Ltd.
- Daimler AG
- Honda Motor Co. Ltd.
- Toyota Motor Corp.
- Fiat SpA
- Peugeot S.A.
- Volkswagen AG
- BMW AG
- Tata Motors Ltd.
- Hyundai Motor Co.
- Mitsubishi Motors Corp.
- Kia Motors Corp.
- Chrysler Group LLC
- General Motors Co.

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