Even as auto sales gained in April and the US consumer continues to spend, there have been signs of wavering economic confidence, and the industry may struggle to maintain its record pace.
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The Italian-American automaker says it sold just over 204,000 cars, trucks and SUVs, enough to report its best May in 11 years.
The new Ford Escape posted a 6 percent increase with 30,861 SUVs sold. The broader S&P 500 and Dow Jones Industrial Average were down less than 0.2 percent. Even when adjusted for fewer selling days, Toyota’s volume fell. Truck sales remained strong, with F-Series truck sales gaining 9% to 67,412 vehicles.
Auto buyers are tapping the brakes.
The average transaction price for a light vehicle sold in the USA rose 3.5% to $33,845, according to Kelley Blue Book, with Detroit auto makers logging the greatest gains on truck and utility-focused lineups. While Ford officials said the midsize Fusion, Ford’s best-selling sedan in the USA, has maintained its market share, its sales fell 21.5% in May. In April, Ford sold 70,774 F-Series trucks following a March sales total of 73,884. Fiat Chrysler Automobiles surprised forecasters with a small gain by making more sales to fleet customers. Ram pickup sales fell 3 percent.
“Continuously growing demand for SUVs and trucks helped push overall average transaction prices up this month”, said Kelley Blue Book analyst Tim Fleming, noting that the overall share of light trucks in May should show a rise to about 60% from 55% in the month past year.
Toyota Motor Corp, No. 3 in the US market behind GM and Ford, said its May sales dropped 9.6 percent to 219,339 vehicles. But that couldn’t make up for a 26 percent decline in auto sales. But that couldn’t make up for a 26 percent decline in its vehicle sales.
Hyundai Motor Co showed an increase of almost 12 percent for May on the strength of SUV sales.
Nissan Motor Co.’s sales fell 1 percent to 133,496. Ford shares dropped 2.8 percent, closing at $13.11. April’s No. 10 auto, the Nissan Altima, fell off the list with a 15.5 percent sales drop despite higher purchase incentives. This isn’t as worrisome as it sounds: almost all automakers are losing sedan sales as buyers continue to migrate to SUVs and trucks.
Total Canadian auto sales dropped to 194,866 vehicles last month, with General Motors Co GM.N reporting a 16.4 percent year over year decline.
A US stall would be worrisome because other worldwide markets are shrinking or still trying to recover from the 2008-2009 financial crisis. Sales of Ford and Lincoln brand cars fell 25 percent.
General Motors Co sales were seen dropping 13 per cent by Edmunds and 8 per cent by TrueCar.
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The Blue Oval sold a total of 235,997 vehicles in the U.S. in May, representing a decline of 6%, compared to the same period past year.
