The American car market is feared to be slowing down and a mixed bag of June sales numbers from top global automakers aggravated concerns regarding the slowing automotive market and increasing economic uncertainty.
Whether this will impact consumer spending on cars remain to be seen over the next few months. Strong sales of pickups trucks and SUVs remain the highlights of the month that helped in boosting the overall sales of the auto industry.
According to Autodata, the auto industry managed to register a 2.5% surge by selling 1.5 million vehilcles. Overall June auto sales were slightly disappointing with seasonally adjusted annual rate stood at 16.6 million vehicles versus a 17.5 million rate in May. However, it should be noted that it was the best June since 2005. While General Motors (GM, Financial) sales slipped 1.6%, its crosstown rivals Ford (F, Financial) and Chrysler witnessed sales surges of 6.4% and 6.5%.
Nearly 80% of the sales during the month came from domestic vehicles while the rest were from imports. Domestic sales recorded 13.19 million SAAR while that of imports came in at 3.47 million SAAR. Deliveries of domestic autos reduced 4% compared with May while import sales saw a decline of 7% over the previous month. Here’s a comprehensive look at the performances of the automakers during the month.
The Detroit three
General Motors said its sales were down 1.6% amid a drop in sales to fleet buyers which was a planned move by the automaker. The carmaker sold 255,210 vehicles in June compared with 259,353 units sold a year ago. Sales of Buick and GMC remained dull. In contrast, Cadillac registered a 5.5% sales gain. Moreover, the Escalade large SUV saw a 17% sales hike year over year. The sales of Malibu and compact Cruze surged 6% and plunged 17%. Chevrolet sales spiked a meager 0.1% aided by sales of the Colorado midsize pickup truck, which was up 38%. Impala and Tahoe sales also increased a stunning 48% and 27.4%.
Ford's sales increased 6.4% to 239,096 vehicles in June compared with 224,681 vehicles in the last year same period. The sales gain is attributable to the robust sales of F-Series pickups that witnessed a 28% rise in sales. The company’s performance was also helped by good performance by its crossovers and SUVs with sales surging 7.3%. The company’s luxury offering, Lincoln’s sales spiked 5.8%.
Chrysler managed to maintain an astonishing sales gain streak months after month. June sales rose 6.5% to 197,073 vehicles helped by impressive sales of Jeep and Ram. This was the company’s 75th consecutive month of sales gain.
Performance of other automakers
Toyota (TM, Financial) saw a 5.6% sales decline in the U.S. selling 197,258 vehicles in June. Last year the company sold 209,912 vehicles in the same month. While Toyota's brand witnessed a 6.2% sales drop, the company’s luxury Lexus cars sales fell a meager 1.3%. Year-to-date sales of Toyota amounted to 1.2 million units, down 2.7% compared with a year earlier.
The Japanese automaker Honda (HMC, Financial), on the other hand, enjoyed a 3.2% sales gain in June as it delivered 138,715 vehicles. The sales gain is attributable to remarkable sales of Honda division in US, up 3% to 127,363 vehicles sold.
Japanese automaker Nissan (NSANY, Financial) sold 140, 553 vehicles compared with 124,228 vehicles sold last year same period. High demands for Frontier pickups and Rogue crossover SUVs boosted the company’s performance to a great extent.
Last word
Though the growth is seen to slow and no mainstream carmaker has registered double digit sales gain through the first six months, the year is expected to see higher sales compared with last year. Pickups, SUVs, and crossovers would be the key drivers boosting sales and making 2016 end on a record note.
Disclosure: I have no positions in any stocks mentioned in this article.
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