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US new-vehicle sales for May 2024, including retail and non-retail transactions, are forecast at 1,446,800, a 2.9% increase from May 2023 on a selling day adjusted basis, according to a joint forecast from J.D. Power and GlobalData.* May 2024 has 26 selling days, one more than May 2023. This sales volume, not adjusted for the number of selling days is an increase of 7% from a year ago. The seasonally adjusted annualized rate (SAAR) for total new-vehicle sales is estimated to be 16.1 million units, up 500,000 from May 2023.
“Expected new-vehicle sales results for May represent a mixed bag of outcomes. On the positive side, the total sales pace will exceed 16 million units for the first time this year. Also, discounts are similar to last month, despite May being a month in which discounts traditionally increase to take advantage of elevated shopping activity during the Memorial Day weekend. This is good news for manufacturer and retailer profitability. However, the industry continues to produce more vehicles than are being sold, leading to rising inventories and increasing the likelihood of elevated discounts as the year progresses,” said Thomas King, president of the data and analytics division at J.D. Power. Continue reading
Norfolk Southern Settles East Palestine Derailment with EPA
The Justice Department and Environmental Protection Agency (EPA) today announced a settlement valued at more than $310 million with Norfolk Southern Railway Company to pay for the damage caused by the 3 February 2023, train derailment in East Palestine, Ohio.* If the settlement is approved by the U.S. District Court for the Northern District of Ohio, Norfolk Southern will be required to take measures to improve rail safety, pay for health monitoring and mental health services for the surrounding communities, fund long-term environmental monitoring, pay a $15 million civil penalty and take other actions to protect nearby waterways and drinking water resources.
“No community should have to experience the trauma inflicted upon the residents of East Palestine,” said EPA Administrator Michael S. Regan. “That’s why President Biden pledged from the beginning that his Administration would stand with the community every step of the way. Today’s enforcement action delivers on this commitment, ensures the cleanup is paid for by the company, and helps prevent another disaster like this from happening again. Because of this settlement, residents and first responders will have greater access to health services, trains will be safer, and waterways will be cleaner,” Regan said. Continue reading →