After missing analyst estimates in March, the Big Three U.S. automakers General Motors (GM), Ford Motor (F) and Fiat Chrysler Automobiles (FCAU) showed only marginal improvement in April.
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GM’s results were among many that highlighted a divide in the market between slumping sales of traditional sedans, and robust demand for pickup trucks and SUVs. It was Fiat Chrysler’s best April since 2005. That total makes for an 11% year-over-year improvement, driven primarily by a total of 25,167 trucks and SUVs sold (up 17.3% year-over-year). Volkswagen sales fell nearly 10 percent as its emissions-cheating scandal continued. Retail sales rose 3.3%, helped by stronger sales at its Buick, GMC and Chevrolet brands.
Industry analysts are no doubt keeping tabs on fleet sales in the US amid concerns that retail demand has plateaued following the 14-year high set in 2015.
Kelley Blue Book is forecasting sales to be flat from last year’s record 17.5 million, but Lindland said they could even fall off a bit as General Motors and other automakers reduce sales to rental auto companies.
Yet strong auto sales last month negate analysts’ concerns that the USA economy and auto market are in a downward trend, as suggested by Morgan Stanley analysts at the start of the year. The division’s truck sales set a record for the month, with RAV4 sales up 32 per cent and Highlander sales up 9.3 per cent.
Ford sales climbed 4% to 231,316 vehicles, a bit lighter than analyst estimates for 4.5%.
Nissan sales were up 12.8 percent over the same time previous year, posting its best April ever.
DETROIT (AP) The truck and SUV boom continued last month, propelling Fiat Chrysler to a 6 percent sales increase and its best April in more than a decade. But because GM has been cutting back on low-profit sales to rental auto companies and other fleets, its overall April U.S. sales fell by 3.5 per cent. Consumers are on track to spend more than $36.9 billion on new vehicles in April, surpassing the previous record for the month set past year, according to J.D. Power and LMC Automotive.
Fiat Chrysler sold 199,631 cars and trucks in April, up 5.6 percent from 189,027 sales in April 2015, and also the strongest April sales of the automaker in 11 years.
Honda taking the lead with a 14 percent increase over April of 2015. Two years ago, for example, April sales jumped 8 percent, or double last month’s expected pace. Volkswagen sales dropped by 9.65% in the United States last month, along with 8.3% sales drop for BMW. However, sales of GM’s Cadillac CTS and ATS luxury sedans plummeted 23 percent and 18 percent, respectively. Lindland said consumers are pulling sales up, and automakers aren’t creating demand with wild incentives or insane lease deals like they have in the past.
“We expect sales to get back on track in April”, Tim Fleming, an analyst at Kelley Blue Book, said in a statement before the results.
Mark LaNeve, Ford Vice President and head of US Marketing, Sales and Service said at the time of sales data release: “We saw strong consumer demand in April, especially for pickups….”
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For the whole industry, the average projection was for a 17.5 million annualized selling rate for the month, adjusted for seasonal trends. Ford’s auto sales fell 12 per cent. Hyundai’s two top-selling cars, the compact Elantra and midsize Sonata, each saw big sales declines. J.D. Power expected April sales to individual buyers to rise 4 percent, while sales to fleets were expected to jump 8.7 percent.
