Auto Sales Stronger Than Expected as Chrysler and Ford Lead The Way

May auto sales are stronger than expected with Ford sales up 0.50% and Fiat Chrysler up 11%. Recall General Motors $GM only report quarterly now. Car sales give us insight to consumer trends.

May auto sales are stronger than expected with Ford sales up 3.46% and Fiat Chrysler up 13.6%. Recall General Motors $GM only report quarterly now. Car sales give us insight to consumer trends.

Ford Ranger 2019

Ford Ranger 2019

May Vehicle Sales

  • Ford up 0.5% vs -0.6% estimate 
  • Fiat Chyrsler is up 11.0% vs 7.4% estimate,
  • Honda +3.1% vs +2.9% estimate 
  • Toyota -1.3% vs -0.6% estimate 
  • Nissan -4.1% vs -8.9% estimate 
  • Volkswagen US +4% vs +5.9% estimate

NB: General Motors in March – No longer Reporting Monthly Sales

GM today announced it will report sales only quarterly. “Thirty days is not enough time to separate real sales trends from short-term fluctuations in a very dynamic, highly competitive market,” statement from GM. 

Note General Motors Edmunds forecast: 13.2% and Cox Automotive forecast: 11.7%

Fiat Chrysler Automobiles $FCAU

  • U.S. sales , including those to fleet customers, rose 11 percent to 214,294
  • U.S. retail deliveries 167,785 vehicles highest since July 2005. Fiat Chrysler Edmunds forecast: 8.9% Cox Automotive forecast: 11.9% 
  • The Jeep brand led the way with a 28.8% sales increase to 97,287.
  • Included a 62.5% boom in sales of the surging Jeep Cherokee.
  • Chrysler brands down 18.1%
  • Fiat brand down 46%
  • Fiat Chrysler rumored to be considering ending the Chrysler brand and discontinuing North American sales of Fiat.

Ford Motor Co. $F

  • U.S. sales, including those to fleet customers, rose 0.7 percent to 242,824
  • U.S. retail sales in May rose .5% to 163,796
  • Truck sales rose 9.4%, with F-Series sales up 11.3%, marking 13 consecutive months of year-over-year gains
  • Transit sales up 12.4%
  • E-Series sales dropped 27.5%.
  • SUV sales increased 0.5%, as a 13.7% rise in Lincoln brand SUVs to 7,295 vehicles offset a 0.7% decline in Ford brand SUVs to 74,406 vehicles.
  • Passenger car sales crashed 13.3%, with Ford branded car sales losing 11.7% and Lincoln brand sales collapsing 36.5%.
  • Ford said the “generational shift” from passenger cars to SUVs continues
  • Ford recently announced it would discontinue sales of the Fusion, Fiesta and Taurus cars.

Toyota

  • Edmunds forecast: -0.6% Cox Automotive forecast: 0.8% Actual results: -1.3%
  • Toyota sold 215,321 vehicles for May in the U.S.
  • Toyota brand sales down 1.5%
  • Lexus luxury brand down 0.1%.
  • Toyota passenger cars fell 11%,
  • Toyota sales of SUVs, crossovers and pickups rose 5.7%. 

Honda

  • Edmunds forecast: 2.9% Cox Automotive forecast: 1.1% Actual results:+3.1%
  • Honda sold 153,069 vehicles in the U.S. in May.
  • Honda brand sales rose 4.3%
  • Acura luxury brand fell 8%
  • Passenger car sales fell 2.7% while rest of  lineup rose 9.2%.
  • The Accord sedan continued its sales slump falling another 15.9% to 28,212.
  • The Pilot SUV’s popularity continued rising 36.1% to 13,573.
  • New May sales records for American Honda trucks (+9.2%), Honda trucks (+11.6%), Pilot (+ 36%), and CR-V (+11.6%)

Nissan

  • Edmunds forecast: -8.9% Cox Automotive forecast: -9.1% Actual results: -4.1%
  • Nissan sold 131,832 vehicles for May in the U.S.
  • Nissan brand sales fell 3.8% 
  • Infiniti brand sales fell 7.1%.
  • Nissan Rogue crossover sales totaled 38,413, up 18.1%, and accounted for 29.1% of the company’s sales.

Hyundai-Kia

  • Edmunds forecast: 0% Cox Automotive forecast: 5.5% Actual results: %

Subaru

Edmunds forecast: Not provided Cox Automotive forecast: 5.1% Acual Results %

Volkswagen Group

  • Edmunds forecast (not including Porsche): 5.9% Cox Automotive forecast: 14.8% Actual results: +4%
  • The Volkswagen brand sold 31,211 vehicles in May
  • Tiguan crossover VW’s best seller with sales of 8,579, accounting for more than 27% of VW sales.
  • Sales of the Audi luxury brand rose 0.6%. Subaru Edmunds forecast: Not provided Cox Automotive forecast: 5.1%

May sales for the industry were expected to decline 1 percent from a year ago, industry consultants J.D. Power and LMC Automotive said. Retail sales were projected at 1.27 million. The seasonally adjusted annual sales rate in May was estimated at 17 million, according to analysts polled by Reuters.

Kelley Blue Book said average new vehicle transaction prices hit $35,635 (26,757.4 pounds) in May, up 3.4 percent from a year ago, driven by still strong demand for trucks and SUVs. Average transaction prices on full-size pickups climbed to $48,213, while full-size SUVs jumped to $63,349.

In 2017 U.S. auto sales fell 2 percent after hitting a record high of 17.55 million in 2016. Sales are expected to fall again in 2018, partly as a result of rising interest rates and fuel prices. There is also a mass  used vehicles coming off lease.

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