GM General Motors Company

By Anne Steele 

Auto makers on Tuesday reported mixed U.S. sales results for July, stoking concerns the industry has hit a plateau.

Ford Motor Co. said its sales fell 3% amid declines in cars and SUVs. The Detroit auto maker sold 215,268 vehicles in the month, compared with 222,014 a year ago. Truck sales showed some strength, rising 5% from a year ago, with vans posting their best July sales since 1978 thanks to the new Transit. F-series sales, meanwhile, slipped 1%.

General Motors Co. said sales slipped 1.9% to 267,258 vehicles, as it cuts back on fleet sales to focus on retail sales. Retail sales, though, grew 5%, driven by across-the-board increases at Chevrolet, GMC, Buick and Cadillac. GM said its brands collectively recorded their best July retail sales since 2007.

Fiat Chrysler Automobiles NV, meanwhile, edged out a 0.3% increase to 180,727 vehicles sold in the month, as continued strength in its Jeep brand outweighed declines in its Chrysler, Dodge, Ram, Alfa and Fiat brands. Jeeps sales rose 5%. Federal authorities are investigating whether Fiat Chrysler inflated sales reports, adding to pressure on the company and sharpening scrutiny of the way car companies report volumes.

Shares of auto makers fell Tuesday, with Ford down 3.6% and GM down 3.9% in the U.S. Fiat Chrysler shares declined 4.5% in Italy.

Kelley Blue Book analyst Karl Brauer said several auto makers struggled to increase volumes last month, despite an extra weekend and rising incentives on many models.

"The industry's six-year sales streak is clearly plateauing, though plateauing at a rate above 17 million annual sales isn't the worst place to be," he said. "Trucks and SUVs have driven the lion's share of growth in recent years, yet many of the market's most popular models were flat last month, suggesting even the utility gravy train is slowing down."

Nissan Motor Co. reported Tuesday that sales rose 1.2% to 132,475 vehicles -- a July record. The Japanese auto maker's trucks sales -- up 16% -- helped offset an 8.6% decline in cars.

Honda Motor Co. logged a 4.4% increase to 152,799 vehicles sold in the month. Truck sales rose 10% to an all-time monthly record, and helped offset an 8.1% slip in car sales.

Toyota Motor Corp. reported sales fell 1.4% to 214,233. An 8.8% slide in car sales weighed on a 7.3% rise in truck sales.

Investors and analysts have for several months been voicing concerns the U.S. auto industry is starting to plateau. But GM's chief economist said at a conference Tuesday the U.S. light vehicle market will set another record in 2016 despite that widespread opinion.

IHS managing director Mike Robinet said the firm is expecting "stronger" U.S. sales in 2017 amid low interest rates and healthy discounting. He doesn't see a falloff until 2018.

July's results were padded by an extra weekend in the month, as well as more discounting from car makers.

Analysts have predicted that industry sales for the month were roughly flat from a year ago amid slowing economic growth in the U.S. and financial jitters abroad.

Kelley Blue Book expects new-vehicle sales slipped 1% in July.

On the heels of a weaker-than-anticipated sales month in June, the firm projected new-car sales to bounce back to a seasonally adjusted annual rate of 17.5 million in July, propelled by a strong Fourth of July weekend, higher incentives and continued growth in leasing.

The firm estimates transaction prices grew 2.5% to $34,264 for a light vehicle in the U.S. as low interest rates, longer loan terms and increased leasing are helping consumers into pricier cars. Cheap fuel, too, is encouraging shoppers to opt for larger trucks and SUVs.

Edmunds.com, meanwhile, projected an even higher SAAR, at 17.8 million, and a 0.7% rise in sales for the month.

"Last year's record-setting sales performance was powered primarily by a strong second half, and July sales suggest that 2016 is poised to play out in the same way," says Edmunds.com analyst Jessica Caldwell, pointing to low interest rates and a strong leasing market.

"The growth might not be as significant as in recent years, but it's still growth nonetheless," she said.

Corrections & Amplifications

Ford's sales fell 3% in July. A previous version of this article misstated that they rose.

Write to Anne Steele at Anne.Steele@wsj.com

(END) Dow Jones Newswires

August 02, 2016 12:03 ET (16:03 GMT)

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