U.S. Auto Sales On Track for Best June in Over a Decade -- Update
July 01 2016 - 10:37AM
Dow Jones News
By Anne Steele
Auto makers are on track for their best June U.S. auto sales in
more than a decade as summer sales started to heat up during the
month.
Ford Motor Co.'s sales rose 6.4% to 239,096 light vehicles.
Truck sales, which bounded up 24%, and SUV sales, up 7.3%, barreled
ahead of car sales, which skidded 12%.
General Motors Co. reported overall sales slipped 1.6% as the
auto maker continues with a planned cut back of less profitable
fleet sales. Retail sales, though, rose 1%, on strength in the
Chevrolet, Buick and Cadillac brands.
Fiat Chrysler Automobiles NV posted a 6.5% rise in U.S. auto
sales, fueled by robust demand for its Jeep brand. The Italian-U.S.
auto maker sold 197,073 vehicles in the month-for its best June
sales in 11 years-compared with 185,035 a year ago. Jeep brand
sales jumped 17% as the Wrangler, Patriot, Compass and Renegade
each recorded their best June sales ever.
U.S. auto sales are on track to hit an 11-year industrywide
high, as cheap gasoline and easy credit continue to boost car-buyer
confidence, steering many to purchase pricier trucks or SUVs. Sales
also took a boost from an extra selling day in the month compared
with the same period a year ago.
"As we head into summer, sales should stabilize just slightly
ahead of last year's pace," said Kelley Blue Book analyst Tim
Fleming. The firm estimates a 5% increase in sales, marking the
highest for June since 2005.
Nissan Motor Co. logged a 13% rise to 140,553 vehicles sold -- a
June record for the Japanese auto maker, propelled by a 14% jump in
sales of crossovers, trucks and SUVs.
WardAuto.com forecast an annualized selling rate of 17.3 million
vehicles in June, a modest slowdown compared with May but ahead of
the average selling rate in the first five months of the year and
on pace to set another annual sales record.
Still, some worry about weaker demand in the market after
several years of market growth as sales incentives and deliveries
to fleet customers have risen. J.D. Power and LMC Automotive
project record incentives-$3,278 per unit-for the month. And
industry analysts estimate more than 20% of sales attributable to
fleet transactions in June.
Kelley Blue Book expects compact SUVs will remain the top
segment in the month, aided by a refreshed Ford Escape and
redesigned Kia Sportage, while midsize cars will fall in market
share amid flat volumes year-over-year.
The average transaction price for a light vehicle sold in the
U.S. rose 2% to $33,652, according to Kelley Blue Book, driven by
continued strength in trucks and SUVS.
Write to Anne Steele at Anne.Steele@wsj.com
(END) Dow Jones Newswires
July 01, 2016 10:22 ET (14:22 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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