US auto sales rise in June but pace slows

Buoyed by robust demand from US consumers for crossover SUVs and trucks, automakers reported strong June sales in those categories, while overall sales figures pointed to a cooling market.

Nissan, Ford, Fiat Chrysler’s US unit, Subaru and Honda all reported sales increases. General Motors, Toyota and Volkswagen fell short.
The drop in sales at GM and Toyota — the two biggest automakers in the US market — suggested a slowdown in growth.
Total US auto sales rose 2.5 percent in June from a year ago, according to industry research firm Autodata. The June sales pace was at a seasonally adjusted annual rate of 16.66 million units, down 2.0 percent from a year ago and 1.4 percent from May.
“We have been expecting a retracement in vehicle sales this year and view (16 million to 17 million) as a reasonable sustainable pace,” Barclay’s automotive analyst Michael Gapen said.
Michelle Krebs of Autotrader said she expected another record year in 2016, but one that indicates slowing growth.
“We think this year we may see some bumps along the way in the second half, but we still think we will eke out a record. But, next year is questionable,” said Krebs, who predicted 2016 sales of 17.5 million to 18 million vehicles.
Toyota, the world’s largest automaker, reported a 5.6 percent US sales drop to 198,257 units. It saw declines in its Corolla and Camry sedans of 11 percent and 12 percent, respectively.
GM, the largest US automaker, struggled as it pivots away from sales to rental fleets, to focus more on retail sales. The automaker said June sales fell 1.6 percent from a year ago to 255,210 vehicles, after they fell 13.4 percent in May.
Volkswagen sales plummeted almost 22 percent as the company deals with the aftermath of the diesel-emissions scandal. The automaker reached a $15 billion settlement in the United States on Tuesday to address the company’s use of software on 2.0-liter diesel cars that cheated emissions tests.
Still, there were positive signs across the industry.
Fueled by low gas prices and increased employment, consumers were feeling more confident, Kreb said, adding that another important factor was the age of cars on the road, currently “the oldest fleet we’ve ever had” at an average 10 years for cars and 11 years for trucks.
Consumers continued to appear more willing to replace their older cars with trucks and sport utility vehicles, rather than sedans or compact cars.
Sales at South Korean carmaker Hyundai were flat year-over-year, with losses among its sedans and eye-popping gains among its compact SUVs. The Tuscon and Santa Fe brands doubled sales, with a combined 25,538 units.
Toyota’s overall sales declines were countered by far better figures for its RAV4 SUV, which saw a 15.5 percent increase. GM reported strong sales growth in its Chevrolet and GMC trucks and SUVs.
Nissan reported the biggest year-over-year sales increase for June, with a 13 percent climb to a record 129,495 vehicles. Among those numbers was an 84 percent increase in sales of its Frontier pickup truck.
Ford, the number-two US automaker, reported a six percent bump from June 2015 to 240,109 vehicles, driven by its F-Series trucks which were up 29 percent from a year ago.
FCA US, the US unit of Italy’s Fiat Chrysler Automobiles, saw a seven percent sales increase from a year earlier to 197,073 units, led by Jeep, Dodge and Ram Truck brands which all posted gains.
Subaru posted a five percent increase, with its mid-size Outback SUV accounting for more than quarter of the 46,598 vehicles sold.
Honda said it sold 138,715 Honda and Acura vehicles, a three percent increase. The CR-V, Honda’s popular SUV, set a June record with 29,615 vehicles sold.

Source: Arab News