U.S. auto sales rose in June thanks to robust demand for SUVs, crossovers and pickups, which was only partially offset by a decline in passenger car sales. With growing customer confidence and strong employment opportunities, consumers bought 2.1% more vehicles compared to a year ago.
HIS Markit auto analyst, Stephanie Brinley, wrote: "With a healthy economy, consumers are spending." Brinley added: "The preference for utility vehicles over cars continues, but as automakers adjust production to match, the rate of decline in car sales is likely to settle."
Performance of U.S. automakers
The largest U.S. automaker, General Motors (GM, Financial), no longer reports monthly. Instead, the company has shifted to quarterly sales reporting. The Detroit automaker sold 758,376 vehicles in the quarter, up 4.6% from the same period last year. Chevrolet brand sales jumped 6.2%. GMC brand sales climbed 6.6% and Cadillac sales surged 3% year-on-year. In contrast, Buick sales dropped 12% during the quarter.
Ford Motor (F, Financial) posted 1.2% sales gain in June to 230,635 vehicles. The sales gain was attributable to the company’s strong performance in the SUV segment, up 8.9% to 77,453 vehicles. Pickups and vans also contributed to the company’s growth as its sales rose a combined 3.2%. By contrast, passenger car sales declined 14% as compared to last year. F-Series pickups sales amounted to a mammoth 79,204 vehicles and are on track to beat its 2004’s full-year record of 939,511.
Fiat Chrysler (FCAU, Financial) recorded monthly sales growth of roughly 8% to 202,264 vehicles. Jeep brand happened to be the company’s top-selling model with sales totaling 86,989 units, up 18.9%. As a matter of fact, Ram and Dodge brand sales spiked 6.3% and 9%, respectively. However, Fiat and Chrysler brand sales decreased 36.4% and 31.7%, respectively.
Performance of other automakers
The Japanese automaker Toyota (TM, Financial) registered a 3.6% sales growth to 209,602 vehicles. The sales gain was powered by impressive sales gains of pickups, SUVs and crossovers. While Toyota brand sales improved 4.4% on a year-over-year basis, Lexus brand sales plunged 2.6%. Highlander SUV sales, on the other hand, soared 25.3%. RAV4 sales, too, climbed in June.
Nissan (NSANY, Financial) sales in June surged 1.2% to 145,096 vehicles, beating estimates. The monthly sales gain was led by a 7.7% sales growth of Rogue crossover (37,004 units). Nissan brand sales in June inched up 2.5%. However, sales of the company’s luxury Infiniti brand dipped 12.8%. It had a negligible impact on the company’s overall monthly growth.
Honda Motor Co. (HMC, Financial) surpassed estimations with sales gain of 4.8% in June to 146,563 units. Honda brand sales climbed 5% year-on-year and Acura lineup sales soared 3.5%. Sales of SUVs, pickups and crossovers rose a combined 12%. In the SUV segment, Pilot SUV sales notched up 35.9%. In the crossover segment, CR-V crossover sales spiked 17.5% from last year. On the flip side, passenger car sales plummeted 2.4% in June.
Disclosure: I do not hold any position in the stocks mentioned in this article.
