JUNE U.S. AUTO SALES
Jeep’s U.S. sales advanced 25 percent to 71,529 last month, marking the brand’s best June ever and its 21st consecutive month of year over year gains.
Photo credit: BLOOMBERG
Continued strength from Jeep and the redesigned Chrysler 200 midsize sedan helped push Fiat Chrysler Automobiles’ sales up 8.2 percent last month.
The automaker reported U.S. deliveries of 185,035 in June, its 63rd consecutive month of year-over -year increases. The results were just below the estimates of most analysts, who projected FCA’s June sales would grow 11 percent.
Still, three of FCA’s five mass-market brands had sales increases during the month, led by Jeep, with a 25 percent rise.
Ram volume edged up 2 percent and Chrysler brand deliveries jumped 28 percent. Sales slid 14 percent at Dodge and 30 percent at Fiat.
Sales of the Chrysler 200 surged 153 percent to 18,560, helping drive a 17 percent gain in FCA’s car deliveries. The company’s light-truck volume rose 6 percent.
After results from other automakers are released and tallied later today, analysts expect industry volume to climb four percent to six percent from June 2014.
Among major automakers, the biggest gainers last month are expected to be Nissan Motor Co., up nearly 12 percent, and Honda Motor Co., with a gain projected at 7.1 percent, according to a survey of analysts by Bloomberg.
Sales are forecast to rise 3 percent at General Motors, 2.3 percent at Ford Motor Co., 3.3 percent at Toyota Motor Corp. and 0.6 percent at Hyundai-Kia.
Hyundai, in a posting on Twitter, said it set a June sales record with 67,502 deliveries.
The seasonally adjusted sales rate is projected to rise to 17.2 million, according to a poll of 11 analysts by Bloomberg. That would be down from the 17.78 million rate in May but higher than the 16.91 million rate in June 2014.
FCA today estimated the June SAAR will come in at 17.5 million, including about 400,000 medium- and heavy-duty trucks.
U.S. sales are on track to hit 17 million this year for the first time since 2001 and only the third year ever. Through May, volume had climbed 4.5 percent to 7.05 million cars and light trucks.
The National Automobile Dealers Association this week increased its forecast for new light-vehicle deliveries in 2015 to 17.17 million from 16.94 million. NADA is also projecting U.S. sales will rise to 17.62 million in 2016, toppling the record of 17.4 million established in 2000.
Steven Szakaly, chief economist for NADA, attributes the bullish forecasts to a “surprising amount of pent-up demand” as well as low interest rates, favorable credit terms and rising employment.
“Looking back at 2009-13, we had four years of subpar demand, with sales either under or well under 16 million. That demand, coupled with an improving economy, will continue to translate into strong new-vehicle sales this year and in 2016,” he said.
“While we’ve had a slower-than-normal recovery from this recession, we are seeing the sixth consecutive year of new light-vehicle sales growth.”
Weaker demand for cars is prompting some automakers and dealers to dangle deals. A Honda store in Troy, Mich.
Photo credit: DAVID PHILLIPS
Dealers and automakers, for their part, are offering generous discounts and finance terms across the board to keep the market moving.
Many of the best deals can be found on cars, where demand is weaker as lower gasoline prices have encouraged more consumers to buy light trucks, namely crossovers and pickups.
Examples of some deals available across the country this week:
• Normandin Chrysler-Dodge-Jeep-Ram in San Jose, Calif., has zero-percent annual percentage rate financing for 60 months on 2015 Ram 1500 pickups. The dealership’s price on some 2015 Jeep Compass models has been cut to $18,230 from $23,980.
• Troy Honda in Troy, Mich., is offering leases starting at $199 for the Civic LX and $219 for the Accord LX.
• Stevens Creek Chrysler-Dodge-Jeep-Ram in San Jose, Calif., is offering leases on the Jeep Patriot at $199 per month for 36 months.
• Participating Kia dealers are offering zero percent financing for 66 months on the Optima, Soul, Forte and Sedona, with the first three months’ payments waived. It’s part of a nationwide summer sale at Kia.
• Toyota Financial Services is offering zero-percent APR for qualified buyers on 13 Toyota models as part of a July 4 holiday sales event that ends July 6. Vehicles covered by the promotion are 2015 Scions and the Toyota Prius, Corolla, Avalon, Camry, Sienna, Tundra and Venza.
• At Hennessy Ford-Lincoln Atlanta in Atlanta, buyers can receive $10,000 off a new 2015 Ford F-150 for a final price of $33,555.
• Stivers Ford-Lincoln in Waukee, Iowa, is offering up to $11,000 off the 2015 F-150.
• As part of a 4th of July sales event, Great Plains Chrysler-Dodge-Jeep-Ram in Hastings, Neb., is dangling $750 bonus cash on 2015 Ram 1500, 2500 and 3500 pickups.
Edmunds.com, in a report released late Tuesday, said leasing continued to drive the market last month, accounting for 28 percent of car sales and a bigger role in deliveries of some trucks.
“Even though trucks are leased at relatively lower rates, small truck leasing is up 34 percent from last June and large truck leasing is up 4 percent year over year,” said Jessica Caldwell, director of industry analysis for Edmunds.
Larry Vellequette and Hannah Lutz contributed to this report.
You can reach David Phillips at dphillips@crain.com.
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