Major automakers recorded mixed US auto sales results for the month of June. Demand for SUVs and pickup trucks remained robust during the reported period. On the flip side, passenger car sales declined.
Performance of the U.S. automakers
General Motors (GM, Financial) no longer reports monthly sales figures. The company sold 746,659 vehicles in the U.S. in the second quarter, down 1.5% from the same quarter last year. While Chevrolet sales plunged from the year-ago quarter, sales of Cadillac, Buick and GMC rose. Crossover sales surged 17%Â year-over-year. Looking ahead, The Detroit-based carmaker will launch new vehicles this year, including the Cadillac XT6, the brand’s first three-row crossover, and the Cadillac CT5 luxury-sport sedan.
Ford Motor Co. (F, Financial) also no longer releases monthly sales figures. The Michigan-based automaker witnessed a second-quarter sales decline of 4.1%. Per industry data, retail sales to consumers dropped more than 8%.
Fiat Chrysler Automobiles NV (FCAU, Financial) registered sales growth of 1.9% in June to 206,083 units courtesy of a 56% sales surge in Ram. In a statement, Reid Bigland, FCA U.S. sales chief, commented, "This type of year-over-year growth is likely not sustainable in the short term; however, calendar-year-to-date, our pick-up truck sales are up 28% ... As a result I do feel that double-digit truck growth is achievable well into the future."
Performance of other automakers
Toyota (TM, Financial)'s sales amounted to 202,352 vehicles in June, which reflected a decline of 3.5% compared to the prior year. The company’s light-truck and Lexus cars recorded declines in the reported period. The RAV4 midsize CUV remained a bright spot for the company, with 39,152 units delivered, up roughly 8%.
Nissan Motor Co. (NSANY, Financial)'s June sales totaled 123,504 vehicles in June, down 15% year-over-year. The company attributed the sales decline to a huge drop in its top-selling Rogue SUV. Having relied on heavy discounts to increase market share in the U.S., the company has slowed the practice with the aim to sell cars more profitably.
Hyundai Motor Co. (KRX, Financial) said its June sales soared 1.5% to 64,202 vehicles, thanks to robust demand for SUVs and trucks.
Last word
Mounting interest rates coupled with fierce competition from many off-lease vehicles led to low consumer spending on new cars. But the Federal Reserve is also expected to trim interest rates this year, leading experts to predict a rise in the second half of the year.
Disclosure: I do not hold any position in the stocks mentioned.
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