April 29, 2024

Auto Sales, Led by Trucks, Jump in May

But in the world of the postbailout auto industry, that firmament has gradually shifted, as Ford has introduced appealing fuel-efficient models while G.M. has contracted, dropping brands and reducing capacity.

On Monday, Ford continued to chip away at its rival, reporting a robust 14 percent gain in American sales in May, to 246,000, about 6,000 behind G.M., which reported a tepid 3 percent gain. Chrysler reported an 11 percent sales increase, to more than 166,000, beating analyst expectations.

The strong performances by Ford and Chrysler helped the overall industry to stay on track to sell more than 15 million vehicles this year for the first time since 2007, before the financial collapse that sent carmakers into a tailspin. All automakers combined to sell 1.44 million new vehicles in the United States in May, an 8.2 percent gain over the same month in 2012.

“The industry is settling into a healthy place where supply and demand are meeting,” said Jessica Caldwell, an analyst with the auto research site Edmunds.com, “but demand is still growing. We’re edging our way into what would be the sweet spot for sales.”

Now demand is driving supply, with Ford, Chrysler and Toyota adding more production and more jobs at United States plants to capture sales momentum. On Monday, Ford announced plans to increase capacity by 10 percent, to 740,000 vehicles, in the third quarter, as it strives to meet increasing demand for its S.U.V.’s and midsize passenger cars.

Ford’s sales increase was driven not only by continued strong demand for large pickups and sport utility vehicles but also by rising sales of its smaller models, like the Fusion, Focus and Fiesta. Sales of the automaker’s Fusion midsize sedan, for example, rose 10 percent, to 29,553 vehicles, for its best May ever.

Ford also reported strong sales of its Escape utility vehicle, which also had its best month ever, and the Lincoln MKZ, which soared 42 percent for its best May on record.

G.M., by contrast, continues to struggle in some major passenger car categories even as other segments like trucks remain strong. Its passenger car sales slipped 6.4 percent, in part because of a 31.7 percent decline for its full-size Chevrolet Impala and a 36.1 percent drop for its Chevrolet Malibu midsize sedan. Its Buick LaCrosse, down 15.2 percent in May, and Regal, down 37 percent, also struggled.

In a sign of G.M.’s urgency, on Friday it unveiled a refreshed version of its Malibu, only a year after introducing a revamped model.

G.M., which sold 253,000 vehicles in May, did have success in its smaller cars, maintaining sales for its midsize Chevrolet Cruze while introducing the smaller Chevrolet Spark and Sonic models.

“It’s not necessarily saying G.M.’s performance was bad, because it wasn’t,” Ms. Caldwell of Edmunds.com said. “It was just that Ford was better. Ford has a balance in their portfolio, while G.M. is a little more hit or miss.”

The strongest sales across the industry remained in pickups and S.U.V.’s, which rose 10.9 percent to 718,890 vehicles in May, in contrast to a 5.7 percent increase in car sales, to 725,736 vehicles.

Sales of Ford’s F-Series rose 30.6 percent, while Chrysler’s Dodge Ram truck brand climbed 21.6 percent. At G.M., large pickup truck sales rose 23 percent, accompanied by a 25.3 percent gain for its Chevrolet Silverado truck, the country’s No. 2 best-selling vehicle with 43,283 units sold.

The 19.2 percent rise in pickup truck sales continues to reflect strong marketplace demand after a recovery in the housing market and a surge in the construction and oil industries. Automakers also cited an aging fleet of pickups and pent-up demand.

“Quite simply, it’s a great time to be in the truck business,” said Kurt McNeil, head of General Motors sales operations in the United States.

Several foreign automakers also reported double-digit sales increases, including a 24.7 percent gain for Nissan, driven by price cuts on seven of the Japanese automaker’s vehicles and the popularity of its Sentra and Altima models.

Mazda reported gains of 19.2 percent, and Subaru of 34.2 percent.

Toyota, the world’s largest automaker, lagged competitors with a 2.5 percent increase, in line with expectations.

For both Toyota and G.M., “the marketplace has become so competitive in their bread-and-butter segments,” said Alec Gutierrez, senior analyst at Kelley Blue Book.

Article source: http://www.nytimes.com/2013/06/04/business/auto-sales-led-by-trucks-jump-in-may.html?partner=rss&emc=rss

Auto Sales Hit 8-Month High, Aided by Stable Gas Prices

Automakers said Tuesday that the annual selling rate for the month was slightly above 13.2 million vehicles, the best performance by the industry since February.

A big contributing factor was a surge in sales of pickup trucks at General Motors, Ford and Chrysler. The auto companies also reported strong sales of traditional S.U.V.’s and crossover models.

Over all, the industry sold about one million vehicles in the month, a 7.5 percent increase from October 2010.

Besides the relative stability of fuel prices, analysts attributed the strength of the truck and S.U.V. market to a need for consumers and corporate fleets to begin replacing older vehicles.

“There are a growing number of consumers for whom a new vehicle is becoming a necessity,” said Jessica Caldwell, an analyst with Edmunds.com, an auto research Web site.

Sales of pickup trucks rose about 9 percent in October over the same month year ago, and S.U.V. sales climbed about 8 percent, according to the Autodata Corporation, a research firm.

About 53 percent of all vehicles sold during October were trucks and S.U.V.’s. Auto executives said part of the demand was seasonal, as consumers bought more rugged products in anticipation of winter driving conditions.

But the across-the-board rise in sales also showed that consumers were becoming less fearful of spikes in gas prices, and in many cases were choosing the utility of trucks and S.U.V.’s over the higher fuel economy provided by small cars.

“Historically, we have seen that consumers change their buying habits for three to four months when fuel prices are up,” said Rebecca Lindland, an analyst with the research firm IHS Automotive. “There’s still an awareness of gas prices, but at the end of the day consumers are proving that small cars aren’t for everybody.”

Chrysler reported the biggest gains of the Detroit automakers during the month, with a 27 percent increase over the same period a year ago.

The increase was partly a result of new car models like the Chrysler 200 midsize sedan and the tiny Fiat 500 subcompact. But Chrysler also reported a 21 percent increase in sales of Ram pickups, as well as robust sales for S.U.V.’s ranging from the compact Jeep Compass to the seven-passenger Dodge Durango.

By comparison, sales rose about 6 percent at Ford and 2 percent at G.M. Both companies reported increases in full-size pickup sales, which can be interpreted as a positive sign for the overall economy because those models are frequently purchased by contractors and builders.

Ford also said its S.U.V. sales climbed 38 percent during October from a year ago, led by big increases in purchases of the compact Escape model and the midsize Explorer.

Foreign automakers had mixed results during the month. Volkswagen led with a 40 percent increase, followed by Hyundai with a 23 percent gain and Nissan with an 18 percent improvement. Honda sales were flat, and Toyota said its sales declined nearly 8 percent.

Many Japanese models were in short supply during the summer because of production disruptions related to the earthquake and tsunami in March. Inventory levels have recently improved, and some shoppers who put off purchases are now returning to showrooms, analysts said.

The industry’s positive showing could carry over through the end of the year, particularly as consumers continue to replace older-model vehicles.

“The relatively strong selling rate seen in October suggests that the fourth quarter may close stronger than previously expected,” said Jeff Schuster, head of forecasting at J.D. Power Associates.

Auto sales have been steadily rising since the spring, despite continued high unemployment and low levels of consumer confidence. Many Americans are now replacing their vehicles.

In 2007, the average age of vehicles nationwide was 9.8 years. But that figure has now climbed to 10.7 years, according to Edmunds.com.

“We’re entering a period now where vehicles need to be replaced because they are just getting too old,” Ms. Lindland said. “Replacement demand will be a key to ending the year on a strong note.”

The industry continues to be a bright spot in an otherwise uncertain economic picture nationally, analysts said. October was the eighth consecutive month in which auto sales topped one million.

“That’s pretty resilient when you consider the onslaught of negative news,” said Peter Nesvold, an analyst with Jefferies Company. “This is not a $500 iPhone. This is a big-ticket, consumer discretionary purchase.”

While G.M.’s overall sales were somewhat below expectations, October turned out to be the best month yet for the Chevrolet Volt, the company’s plug-in hybrid electric car. G.M. said it sold 1,100 Volts during the month, compared with its chief competition, the all-electric Nissan Leaf, which had 849 sales.

Article source: http://feeds.nytimes.com/click.phdo?i=e5c54b30239fd71ced7138db1bbe8cac