Fiat Chrysler Posts Better-Than-Expected August Sales
September 01 2015 - 08:40AM
Dow Jones News
Fiat Chrysler Automobiles NV on Tuesday logged a
better-than-expected 1.7% increase in U.S. auto sales in August
despite a calendar quirk and a tough year-over-year comparison,
extending the auto maker's streak of sales gains to 65 months.
More sales results from auto makers are due out later Tuesday,
and overall U.S. sales are expected to cool in August as the impact
of a later Labor Day masked an otherwise strong month of
buying.
Much of the blame for the lackluster sales is the accounting for
Labor Day holiday purchases. For the first time since 2012, those
sales will be included in September results. Traditionally, Labor
Day sales are reported in August when the holiday falls in early
September. This year, it falls on Sept. 7.
Last August also included one more selling day, which—coupled
with the impact of Labor Day—helped make it the strongest month for
auto sales of 2014, according to Sterne Agee.
Still, the seasonally adjusted annualized rate is expected to
come in above 17 million new cars and trucks for the fourth month
in a row as the gravy train of low lease rates, cheap gas and
consumer enthusiasm continues to roll. The last time the industry
had a four month sales streak above 17 million vehicles was
2006.
At Fiat Chrysler, growth in August was again driven by strength
in its Jeep brand and Ram pickup trucks.
Jeep sales grew 18% to 80,804 vehicles, the brand's best sales
month ever. Sales of Ram trucks grew 6.1%, with pickup trucks
logging their best month of August sales ever.
Dodge sales fell 15% amid declines in Dart, Avenger and Charger
sales.
In all, Fiat Chrysler sold 201,672 vehicles, above the 199,091
Edmunds.com had forecast.
Industry watchers will be studying August sales to see if auto
makers can continue to squeeze more money from the showrooms. The
industry's average transaction price, according to TrueCar Inc.,
should come in at $31,825—about $220 more than the same period a
year earlier.
Auto makers need all the cash they can get as the China market
continues to struggle. In July, China passenger-vehicle sales fell
for a second consecutive month. Sales of passenger cars fell to
1.27 million vehicles, a 6.6% drop compared with the same period a
year earlier.
Last week, Chinese stocks suffered their worst single-day loss
since February 2007 amid concerns the country's economy is
significantly slowing. China's car sales figures are due out later
this month.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com and Jeff
Bennett at jeff.bennett@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
September 01, 2015 08:25 ET (12:25 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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