Fiat Chrysler's U.S. Auto Sales Rise
May 03 2016 - 9:10AM
Dow Jones News
Fiat Chrysler Automobiles NV on Friday posted a 5.6% rise in
April U.S. auto sales, driven by continued demand for its Jeep
brand.
After a sluggish start to the year, U.S. light-vehicle sales are
expected to regain momentum in April as cheap credit, low gasoline
prices and rising consumer confidence helped drive more buyers to
showrooms.
Fiat Chrysler sold 199,631 vehicles in the month, compared with
189,027 for the month last year, making it the Italian-U.S. auto
maker's best April in 11 years. Jeep brand sales climbed 17% for
their best April yet, with the Renegade and Compass logging their
best monthly sales ever.
Analysts forecast industrywide sales will rise 5% in April to
set a new monthly high and the selling pace will eclipse
17.5-million vehicles, putting the auto industry back on track to
beat last year's sales record.
"Following a disappointing March, we expect sales to get back on
track in April," said Kelley Blue Book analyst Tim Fleming.
"Increased fleet sales and rising incentive spending among auto
makers remain the factors to watch, but retail demand appears to be
holding steady, signaling the industry's strong run isn't over
quite yet."
Car makers benefited from an extra selling day in April, as well
as the Easter holiday falling in March, giving them five full
weekends of sales. Typically, new-car sales start to pick up in the
spring when there is better weather and longer days.
With gas prices hovering at about $2 a gallon, customers
continued to snap up pricier trucks and sport-utility vehicles with
sales of those models expected to climb 7% in April, according to
WardsAuto. Passenger-car sales, meanwhile, are forecast to fall 6%
as more shoppers gravitate to roomier vehicles.
For the month, the average transaction price rose an estimated
1.9% to $33,865 for a light vehicle in the U.S., with Detroit auto
makers posting particularly strong numbers, according to Kelley
Blue Book.
Write to Anne Steele at Anne.Steele@wsj.com
(END) Dow Jones Newswires
May 03, 2016 08:55 ET (12:55 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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