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U.S. Auto Sales Post Best November Since 2003

December 5, 2013 by · Leave a Comment 

U.S. sales of cars and light trucks surged 9% in November to 1.24 million units, which is the fastest pace in almost seven years.

The industry’s annualized sales rate, adjusted for seasonal factors, rose to 16.4 million last month, up from 15.3 million a year earlier and easily topping analysts’ forecasts in the 15.8 million range.

Last month’s SAAR was the highest since the 16.8 million mark reached in February 2007 — 10 months before the start of the recession. It’s the second time the SAAR has topped 16 million this year after hitting 16.1 million in August, a sign that the industry’s recovery still has plenty of fuel.

“Industry sales in November picked up after Thanksgiving, contributing to the best sales pace of the year,” said Bill Fay, Toyota division group vice president and general manager. “Showroom traffic surged over the holiday weekend for Toyota, indicating good momentum we expect to continue through the end of the year and into 2014.”

It was the best November since 2003 and just over 84,000 units shy of the industry’s best November ever — 2001, when sales totaled 1.328 million. Industry sales topped 16 million units from 1999 through 2007 before the collapse of 2008-09.

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Detroit’s Big 3 Posts 14% Spike in October Sales

November 1, 2013 by · Leave a Comment 

Combined U.S. sales by the Detroit 3 rose 14% last month, helped by strong demand for sedans and pickups and an increase in showroom traffic after the partial government shutdown ended.

Automotive News reported that General Motors posted a 16% gain after losing market share in August and September. Sales increased 9% for Toyota Motor Corp., 14% for Ford Motor Co. and 11% for Chrysler Group. Nissan North America and Hyundai Motor America each set October records, while Volkswagen said sales of its namesake brand fell 18% during the month.

“Consumers showed resiliency in October with steady auto sales despite headwinds caused by the government shutdown,” Bill Fay, Toyota Motor Sales USA general manager and group vice president, said in a statement. “The growth in the auto industry continues to play a leading role in the economic recovery, and Toyota is on track for a strong close to the year.”

The results from automakers that have released so far are in line with analysts’ forecasts of a 12% gain in October. Executives and analysts had said the closure of government offices curbed traffic at many dealers in the first half of October before rebounding in the second half of the month.

General Motors led the Detroit 3 as all four of its brands posted double-digit increases, including a 31% gain for Buick. Sales rose 16 % for GMC, 15% for Chevrolet and 10% for Cadillac.

“Chevrolet, Cadillac and Buick-GMC all performed well in the month, and the sales tempo really picked up after the government shutdown ended,” Kurt McNeil, vice president of U.S. sales operations, said in a statement. “We are particularly pleased with our truck momentum. Chevrolet and GMC have the newest and best light-duty trucks, sales are accelerating and we are gearing up for the second, third and fourth phases of our strategic truck plan.”

Sales of the Chevrolet Silverado and GMC Sierra rose 11% from a year ago. GM said the redesigned versions of the trucks accounted for 76% of its light-duty pickup sales and that sales of the 2014 models increased 62% from September.

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August Auto Sales Boom, But Is The Party Over?

September 5, 2013 by · Leave a Comment 

Automakers sold new cars and trucks so fast in August they blew past even the most optimistic forecasts.

USA Today reported that the month’s annualized sales pace was 16.1 million, Autodata reported, a rate not seen since November 2007 before the Great Recession. A year ago, the pace was 14.5 million, and that didn’t seem bad at the time.

The raw numbers: 1.5 million new vehicles sold in August, up from a bit fewer than 1.3 million a year ago.

Year to date, car companies have sold 10.6 million new vehicles, up from 9.7 million a year ago and a difference enough to keep three or four big auto factories running full blast.

The people buying all those cars and trucks are making big ones their favorites — as if there’d never been $4 gasoline — and are paying higher prices. TrueCar.com said the average transaction price in August hit a record $31,252.

And the Japanese brands — so beloved before the recession, then somewhat out of favor — have roared back. Toyota displaced Ford in the No. 2 U.S. sales spot in August; Honda inched past Chrysler into fourth.

But just as the party seems unstoppable, the high times might, in fact, be about over. If retired Fed chairman Alan Greenspan were noodling the auto business, he might be muttering “irrational exuberance.”

“We expect September to retreat a little,” cautioned Volkswagen Group of America CEO Jonathan Browning, a master at understatement, after VW announced sales Wednesday, foretelling the tone of others.

“Some might say we’re back to the heady days of 2007 with the same kind of sales rate as in the pre-Great Recession era. To that we might caution ‘Not so fast,’ ” says Jack Nerad, executive editorial director and market analyst at Kelley Blue Book.

What’s up, why it might go down:

• Trucks, big and profitable, boomed in August. Ford sold more than 70,000 F-Series pickups, only the second time this year. Chevrolet’s big-pickup sales rose 24.3% even though it’s just now getting the redesigned 2014 models fully launched. Chrysler’s Ram standard-duty pickup jumped 31%.

Commercial users buy a lot of the trucks, so that’s a vote for optimism on the economy. But big pickups also are an indulgence among gentrified truckers, who fled their size and costs when the economy turned down. And just because business users hope the economy’s got legs — and helps pay for their new pickups — that’s no guarantee they’re right.

• Interest rates still are low, though in some arenas — home mortgages are obvious — they’ve begun to rise, slowing purchases. If the Federal Reserve decides the economy’s sturdy enough to let them go higher, they could make car loans too expensive for some buyers. Or, the higher-interest loans could mean buyers take less-expensive cars, still bad news for automakers’ profits.

• Automakers are in tall cotton. “Incentives are down and transaction prices are up,” says Fred Diaz of Nissan. More cars are selling because of “the age of the vehicles out there” and a boost in consumer confidence.

But so-called marginal buyers will start to re-enter the market, probably next year, GM execs pointed out. They won’t buy such expensive cars and might demand bigger rebates.

• Pent-up demand isn’t satisfied. Not everybody who nursed a car through the recession has traded the old buggy for a new one yet. Some might never, deciding to keep the old one running or worrying about their jobs. It’s not clear yet just what’s the true, free-market level of auto sales and what’s still a wave of leftover demand.

Sales rose last year, for example, even though the average age of vehicles on the road increased. Not a bad sign, but confusing.

Says Nerad, “The overall economic recovery is weak and fragile, so another shock could send sales back. The short-term outlook for the industry is good, but a more robust economy and better employment figures would turn caution into full-blown optimism.”

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Pickup Trucks Give Lift to July U.S. Auto Sales

August 1, 2013 by · Leave a Comment 

U.S. auto sales continue to rocket forward and now are running at a level near that of 2007, when the industry and the economy were riding high.

The Wall Street Journal reported that Chrysler Group LLC and Ford Motor Co. both reported 11% sales gains for July, while General Motors Co.’s sales were up 16% from a year earlier. Other automakers are reporting sales throughout the day.

The auto sector has been the most consistently positive area of the U.S. economy for the past several years. The companies have added hundreds of thousands of jobs as demand rises off a very low sales base in 2009. New car sales in July were forecast to rise 16% by Kelly Blue Book, enough to bring the seasonally adjusted annualized sales rate to 15.8 million units.

Now auto companies are getting a boost from the housing and energy sectors. Pickup truck sales, which are tightly related to new housing starts, have jumped this year. GM said July sales of its full-size GMC Sierra and Chevrolet Silverado pickups were up 44% from a year earlier. Ford’s F-series pickup sales were up 23%, while Chrysler’s Ram pickup notched a 31% gain.

“For GM, July was the most well-balanced month of the year from a retail sales standpoint: trucks were hot, but so were small cars and family vehicles,” said Kurt McNeil, vice president, U.S. sales operations, in a statement.

These high-margin and revenue trucks helped Ford, Chrysler and GM post strong North American earnings for the second quarter, countering weakness in Europe.

GM sales rose to 234,071 from 189,119 in July of last year. Ford’s light-vehicle sales, which exclude heavy trucks, climbed to 193,080 from 173,482. Chrysler sales increased to 140,102 from 126,089. Nissan Motor Co. said its U.S. sales rose 11% in July to 109,041 units, its highest total for July.

Chrysler’s July success extended the company’s streak of year-over-year gains to 40 months, mostly driven by truck sales. Jeep sales rose only 2%, as it continued to take a hit from having few Jeep Liberty sport-utility vehicles to sell. The company stopped making the Liberty last August, and its replacement, the all-new Jeep Cherokee, doesn’t go on sale until September.

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Report: June Auto Sales May Hit 66-Month High

July 2, 2013 by · Leave a Comment 

General Motors Co. and Ford Motor Co., extending the recovery in the U.S. auto market, said their deliveries in June exceeded estimates as the industry selling pace may accelerate to the fastest in 66 months.

Bloomberg reported that Ford sales of cars and light trucks gained 13% to 234,917, beating the 12% increase that was the average of 11 estimates. Deliveries for Chrysler Group LLC increased 8.2% to 156,686 vehicles. GM sales rose 6.5 percent to 264,843, topping the 2.1 percent average estimate of 11 analysts. Toyota Motor Co. sales rose 9.8%.

Americans are buying new cars and trucks at the fastest rate since 2007 as they replace the oldest vehicles ever on U.S. roads. Automakers including Chrysler and analysts said they expect pent-up demand, attractive financing offers and an improving economy will keep propelling industry sales as the Federal Reserve winds down its unprecedented easing programs.

“The same factors are still in place: Pent-up demand is unleashing, credit is cheap and widely available, and in terms of trucks, it’s all about the economy recovering and housing starts,” Michelle Krebs, an analyst at auto researcher Edmunds.com, said in a telephone interview.

Sales of Ford F-Series pickups surged 24%  to 68,009, the Dearborn, Michigan-based company said in a statement. GM’s Chevrolet Silverado climbed 29% to 43,259. Chrysler’s Ram pickup increased 24% to 29,644.

Sales for Chrysler, the third-largest U.S. automaker, have gained for 39 consecutive months. The Auburn Hills, Michigan-based automaker’s increase in June matched the average of 10 analysts’ estimates in a survey by Bloomberg News.

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Report: April U.S. Auto Sales Should Gain 7%

April 19, 2013 by · Leave a Comment 

U.S. auto sales in April are expected to rise 7% and the annual sales pace should top 15 million vehicles for the sixth straight month as consumers remain positive about the economy, J.D. Power and Associates and LMC Automotive said today (April 19).

Reuters reported that sales of new cars and trucks in April are expected to climb to more than 1.3 million vehicles, while the annual sales pace is forecast to reach 15.2 million vehicles, the research firms said in their monthly forecast. Since November, the annual rate has ranged from 15.3 million to 15.5 million.

Auto sales are an early indicator each month of economic health. The industry has so far proven stronger than the overall U.S. economy as the record high age of cars and trucks on the road has reached more than 11 years, and easier availability of credit have pushed consumers into the market.

“The irrepressible buying behavior of consumers is driving auto sales growth in 2013, as consumer spending remains remarkably stronger than the economy suggests it should be,” Jeff Schuster, senior vice president of forecasting at LMC, said in a statement.

“If the current favorable trend in the stock markets and housing continues throughout the year, the automotive market may be poised for a breakthrough performance,” he added.

The forecast said strong sales are being complemented by the ability of automakers to increase their prices to boost profit margins.

Consumer-facing transaction prices are up 3.1%, which equates to an extra $13.2 billion spent on new vehicles through the first four months of the year, J.D. Power said. The average price of used vehicles sold at dealers has also risen 3.8% so far this year.

“The strong used-vehicle prices we’re seeing are supporting new-vehicle demand and are reflective of the general pricing discipline being exhibited by new-vehicle manufacturers,” said John Humphrey, senior vice president of the global automotive practice at J.D. Power.

“Industry sales are also benefiting from an increase in the number of maturing vehicle leases, a trend that will continue throughout 2013,” he added.

The U.S. auto sector is scheduled to report April sales results on May 1. In March, sales rose 3.4% — in line with expectations — as rising home prices and an increase in housing construction spurred demand.

 

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U.S. Carmakers Recorded Solid Sales in June

July 5, 2012 by · Leave a Comment 

Detroit’s carmakers saw strong June U.S. car sales with Chrysler Group LLC, a subsidiary of Italian Fiat SpA (Milan: F), reporting 20% year-over-year sales growth, General Motors Co. reporting 16% sales growth and Ford Motor Co. reporting more modest 7% sales gains.

The news sent automakers’ shares up, with GM’s up about 6%, with more modest gains for its rivals, the International Business Times reported.

Chrysler was the first major automaker to report June car sales Tuesday and posted its strongest June in five years with 144,811 vehicles sold. However, industry analysts expect overall U.S. auto sales to be more or less flat from May with a seasonally adjusted average selling rate, or SAAR, of between 13.6 million and 14 million for June. June sales for U.S. automakers were strong in June, though, in part due to insulation from macroeconomic uncertainty for the industry.

“The combination of new products, available credit, lower fuel prices and modest economic growth was a stronger influence on consumer behavior than economic and political uncertainty,” General Motors Vice President for U.S. sales and operations Kurt McNeil said Tuesday.

The auto industry as a whole isn’t expected to demonstrate the strong sales growth of the first five months due to seasonality in car sales, said Alec Gutierrez, senior market analyst for Kelley Blue Book. Chrysler projected a SAAR of 14.4 million units, well above analyst projections.

Chrysler

Chrysler sales gained 20% in June, marking the 27th month of year-over-year sales growth. The Chrysler, Jeep, Dodge, Ram Truck and FIAT brands all posted gains. Chrysler brand sales rose 63%t, the best June sales since 2008.

“June was another solid month for the Chrysler Group with U.S. sales up 20% and second-quarter sales increasing 24% compared with the same period in 2011,” President and CEO of Dodge Brand and head of U.S. sales Reid Bigland said.

Chrysler has been the only profitable division of Fiat in recent quarters. Strong sales from the American unit could bolster weak European sales for the Italian automaker.

Ford

Ford reported June sales rose 7% from the year due to higher sales of trucks and SUVs.

“June was a good month for Ford and a particularly strong month for vehicles like Escape, Fusion, Explorer and F-Series,” said Ken Czubay, Ford’s vice president of U.S. marketing, sales and service.

Ford sales are up 7% for the year so far with 1.14 million vehicles sold, including 207,759 sold in June. The bulk of June sales gains came from SUV sales. SUV sales rose 24.8% while truck sales gained 1.2%. Car sales growth was more modest at just 0.3%.

Sales of Ford’s flagship F-series trucks rose 10.9% with 55,025 sold, the best June sales in five years, indicative of increasing demand for Ford trucks. Car sales were weaker, though, with both the Fiesta and Focus posting losses. However, Fusion sales gained 17.4%.

Ford’s Lincoln brand actually posted a 2.5 percent gain with 7,544 units sold, indicating positive movement.

General Motors

GM, the No. 1 automaker reported 15.5% year-over-year U.S. sales growth in June and the best sales month for the company since September 2008.

All four of GM’s brands, Chevrolet, GMC, Buick and Cadillac, reported double digit sales gains, with Cadillac leading the pack at 26.8%. Overall, GM sold 248,710 vehicles in June and projected a seasonally adjusted annual rate of sales of 14 million for June, in line with the high end of analyst expectations.

Toyota Motor

Toyota, Japan’s No. 1 company, said June U.S. sales rose 60.3% compared to the year before, the company announced Tuesday.

The exceptional growth in year-over-year sales likely reflects the company’s continued recovery from supply-chain, manufacturing and inventory disruptions caused by last year’s Japanese earthquake and Tsunami and floods in Thailand.

 

 

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U.S. Auto Sales Head for Best Year Since 2007

May 11, 2012 by · Leave a Comment 

U.S. auto sales are on pace for the best showing since 2007 and a third straight year of at least 10% gains, only the fourth such streak since the Great Depression, as more-confident buyers return to showrooms.

Bloomberg reported that automakers are adding overnight shifts and cutting workers’ vacations to meet rising demand for light vehicles.

Sales this year may reach 14.3 million cars and light trucks, equal to the first-quarter pace, according to estimates from 14 analysts compiled by Bloomberg. It would be the best full year since 16.1 million in 2007. The same analysts in January were expecting sales this year of 13.6 million before Toyota Motor Corp. and others exceeded projections.

“Even if we stay where we are, it’s a pretty good year,” said Brian Johnson, an industry analyst at Barclays Capital in Chicago, who is predicting full-year U.S. sales of 14.4 million.

Pent-up demand, an improving economy and loosening credit has spurred the better-than-estimated auto sales and helped General Motors Co., Ford Motor Co. and Chrysler Group LLC to first quarter profits that beat analysts’ forecasts even while deliveries fell in Europe.

First-quarter deliveries in the U.S. ran at the strongest pace since the same months in 2008, when sales started at an annualized rate of 15.4 million before collapsing to a full-year tally of 13.2 million, said Kevin Tynan, a Bloomberg Industries analyst based in Skillman, N.J.

 

 

 

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New U.S. Car/Truck Purchases Surge in March

April 4, 2011 by · Leave a Comment 

U.S. sales of new cars and trucks rose in March, helped by a brighter jobs outlook and rising sales of fuel-efficient vehicles.

New vehicle sales rose 11% at General Motors, 16% at Ford, 25% at Honda and 27% at Nissan, all aided by sales of smaller, more efficient cars and crossovers, which look like truck-based SUVs but are more fuel efficient and nimble because they are built on car underpinnings.

Of major automakers, only Toyota Motor Corp. reported a decline, nearly 6%.

In March, the economy added 216,000 new jobs, bringing the unemployment rate to a two-year low of 8.8%, the Labor Department reported Friday. Companies added workers at the fastest two-month pace since before the recession began in late 2007.

Nearly all companies reported strong sales of small cars during the month.

But truck sales also were healthy in March for just about every manufacturer, a sign that businesses were buying as the economy continues to recover.

George Pipas, Ford Motor Co.’s top U.S. sales analyst, said small car sales shot up in the first part of March and then stabilized in the last three weeks as gas prices leveled off at around $3.50 per gallon. But Pipas said it’s unclear if sales stabilized because of gas prices or if limited selection and availability of small cars dampened sales.

Ford had two months’ worth of the Fiesta subcompact at the beginning of March, for example, but that fell to 40 days’ supply at the end of the month as sales outpaced production. And the earthquake in Japan pinched supply of some small cars made there like the Toyota Prius and Honda Fit.

J.D. Power and Associates predicted that nearly a quarter of vehicles sold to individual buyers were compact or subcompact cars.

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Auto Industry Reports Strong February Sales

March 2, 2011 by · Leave a Comment 

February was one of the strongest months in the past year for auto purchases as renewed consumer confidence sent shoppers to car lots, the Los Angeles Times reported.

With most major carmakers reporting Tuesday, February U.S. sales were up more than 20% overall compared with the same month a year earlier to about 1 million vehicles, according to industry estimates.

“The consumer is back to the showrooms,” said Brian Johnson, an analyst with Barclays Capital.

Certainly that was the case for General Motors Co., which on Tuesday said its February U.S. sales rose 45.8% compared with a year earlier to 207,028 vehicles.

The automaker said its retail sales grew by 70% over February 2010 and that its sales to car rental companies and commercial users were about even with the same period a year earlier. The gain in the retail market was the highest year-over-year jump in GM’s history.

“Our plan was to get off to a quick start this year and we did just that,” said Don Johnson, GM’s sales chief. “Having the right vehicles in inventory, combined with aggressive advertising and targeted consumer marketing has been the key to our success in the first two months of this year.”

GM’s robust numbers were helped by “very large incentives offered by the manufacturer for the second month in a row,” Johnson, the Barclays Capital analyst, wrote in a report to investors.

But the analyst said the deals offered by GM don’t signal an outbreak of a broader price war that could kill off industry profits. Johnson noted that GM was “tactically” offering higher incentives while the automaker’s management had recently “reiterated its commitment to keep its incentives in line with the industry for the year.”

In fact, the industry average for incentives was the lowest for a February since 2007, said Jesse Toprak, an analyst at TrueCar.com.

Ford Motor Co. said its total February sales rose 14% compared with the same month a year earlier to 156,626.

Retail sales of Ford’s small cars — Fiesta and Focus — were more than double year-ago levels, which the automaker said could be a result of rising gas prices.

Nissan North America, Inc. said its sales rose 31.6% in February to 92,370 vehicles. The figure set a Nissan record for February U.S. sales.

Toyota Motor Corp. said its February sales rose 41.8 percent41.8% to 141,846 vehicles. Johnson of Barclays Capital cautioned that the gain was deceptive, “the result of a very easy comparison versus last year, when its sales suffered from safety concerns.”

Toyota has issued more than 13 million product recalls since September 2009 in the U.S. alone, including the recall of more than 2 million vehicles to correct problems with floor mats and other issues that could cause unintended acceleration. Toyota briefly stopped selling many of its popular models a year ago to fix sudden acceleration problems.

Still Toyota officials were pleased with the result.

“After two months of improving sales, we feel good about the way 2011 has started,” said Bob Carter, a Toyota vice president.

Chrysler Group said its February sales rose 13% to 95,102 vehicles.

Analysts noted that it was a strong month overall for retail car sales.

“Consumers hit the showrooms during the Presidents Day weekend at a rate that well outperformed February of 2010,” said Jeff Schuster, executive director of global forecasting at J.D. Power & Associates. “The strong retail performance is pushing the (annual) retail selling rate to a level that is approaching 11 million units.”

After suffering through nearly two years of historically low sales, auto dealers were happy to see the flood of customers.

“We are trending to do 140% over February 2010. It is nice to see sales come back,” said Beau Boeckmann, vice president of Los Angeles-area dealer Galpin Ford, the nation’s largest Ford dealership.

“Our biggest hits right now are the Edge crossover and the Fusion sedan and the hybrid. The new Fiesta and the new Explorer are also doing extremely well,” he said.

Schuster estimated that, including fleet sales, automakers were at an annual rate of about 12.6 million vehicles. GM estimates the number to be as many as 13 million vehicles. Most automakers are forecasting total sales of about 13 million, up from 11.6 million last year.

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