Mixed results for US market
BY DAVID HASSALL | 2nd Aug 2012
Big gains were posted by Toyota (up 26.1 per cent) and Honda (up 45.3 per cent) – both coming off low bases after last year’s Japanese natural disasters – but Chrysler was also a stand-out performer, recording its 28th successive month of growth.
The market gain in July was at the lower end of industry expectation due to high unemployment and weak consumer confidence in the US, but the major car-makers expect stronger growth in coming months for a year-end total market of more than 14 million vehicles.
Chrysler Group sales increased 12.6 per cent to 126,089 vehicles, the now Fiat-owned company’s best July result since 2007. All the group’s brands were up on last year, highlighted by a 34.8 per cent increase Chrysler-badged vehicles.
Increased sales have translated to an improved financial situation for Chrysler Group, with the company’s head of sales, Reid Bigland, announcing a decade-high operating profit.
“July was another solid month for Chrysler Group as we again demonstrated our disciplined and methodical approach to growing sales and profits,” he said.
“In July we recorded a 13 per cent increase in sales and our 28th-consecutive month of year-over-year sales growth. In addition, we also announced a second quarter modified operating profit of $755 million, representing our highest quarterly profits in more than a decade.”Detroit rivals GM and Ford are not so happy after reporting drops of 6.4 and 3.8 per cent respectively.
GM remained top of the US sales tree with 201,237 vehicle sales, despite the drop – well ahead of Toyota’s 164,898 for the month – but was hit hard by a 41 per cent fall in rental sales. The only bright news for GM was a 20.7 per cent gain for Cadillac, which does not rely on rentals.
GM US sales operations vice-president Kurt McNeil said economic indicators pointed to a stronger market going forward.
“Signs of a housing recovery and good news on consumer confidence and household income should help keep the light vehicle selling rate in the 14-million range and drive seasonally higher truck sales as we move toward fall,” he said.
Ford Motor Company was boosted by a 12th straight month of sales increases for its F-Series truck – America’s top-selling vehicle – with 42 per cent of the 49,314 sold being EcoBoost-equipped F-150s.
The company sold a total of 173, 966 vehicles to remain number two in the US for the month, thanks to increased sales of Ford-branded Focus, Fusion, Taurus and Mustang passenger cars.
Ford US marketing, sales and service vice-president Ken Czubay said retail (private buyer) sales increased by two per cent in July as customers turned to more fuel-efficient vehicles.
“Fuel economy continues to be a top consumer purchase driver across our lineup,” he said.
“Ford’s fuel-efficient F-150 EcoBoost is a favorite among truck buyers returning to the market as new home construction picks up.
“Cars featuring strong fuel economy are in demand as well, particularly Fusion with its fifth straight monthly sales record. Fusion’s strength positions us well for the fall arrival of the all-new Fusion featuring EcoBoost engines, a hybrid and a plug-in hybrid.”While Honda’s massive sales leap to 116,944 units came from across the range, with from a 78 per cent increase for Civic, 47 per cent rise for CR-V (a seventh consecutive record month), 88 per cent lift for Odyssey and 70 per cent for Accord.
“As our sales momentum continues to build through the summer, Honda is experiencing its best year-to-date sales in four years,” said American Honda executive vice-president of sales John Mendel.
Nissan, which was not as severely impacted by the parts shortages last year, recorded a 16.2 per cent increase in July to 98,341 vehicles, with its top-selling Altima gaining 24.7 per cent in the first month on sale of the all-new 2013 model.
Volkswagen posted its best July and year-to-date results in the US since 1973, up 27.3 per cent for the month (to 37,014 vehicles) and 34.1 per cent YTD.
