April a disappointing month for U.S. auto sales

(May 2, 2019) April was a disappointing month for U.S. auto sales as rising car prices pinched buyers' pockets. The average price of a new car was $36,720 in April, according to Edmunds. That's the highest level so far this year and more than $700 above April 2018. Adding to consumer angst,  interest rates continue above 6 percent.

The seasonally adjusted, annualized pace of sales for April tumbled to 16.41 million. The April sales rate — the lowest since 15.54 million in February 2014 — was also down sharply from 17.42 million in March and April 2018’s 17.25 million rate.

Ford, General Motors, Fiat-Chrysler (FCA)and Toyota all saw year-over-year declines. April marked the fifth straight month GM deliveries have dropped year over year.

FCA's U.S. sales fell 6 percent, Toyota deliveries slipped 4.4 percent,  Ford's sales dropped 4.7 percent, with the Ford division down 4.7 percent and Lincoln off 6.2 percent, and GM's sales dropped an estimated 2.6 percent.

There were some bright spots among auto builders. Nissan was up 9 percent year-over-year, Hyundai-Kia was up 1.7 percent and Honda managed a 0.1 percent increase. Subaru kept chugging along with its 89th straight monthly gain, this time 7.7 percent. It was the best April in company history led by Forester and Outback. And Volkswagen was up 8.7 percent.

Ford's total car deliveries skidded 21 percent last month, while utility vehicle sales fell 9.1 percent and pickup volume jumped 7.3 percent, helped by healthy demand for the F series and the revived Ranger.

At FCA, sales rose 25 percent at Ram, with pickup sales jumping 25 percent to 49,106, but volume fell 7.6 percent at Jeep, 24 percent at Dodge, 37 percent at Chrysler and 34 percent at Fiat. Sales at Jeep, FCA's biggest division, have now slipped four straight months year over year. In April, Wrangler demand fell 25 percent and Cherokee volume dropped 13 percent.

Chrysler sales fell 37% while Dodge slipped 24%. FCA's Fiat brand saw a 34% dip in sales last month while Alfa Romeo was down 14%.

"April marks the start of the spring selling season and we anticipate strong consumer spending as we move through May," FCA's U.S head of Sales Reid Bigland said. "The industry may be shaking off the first-quarter sluggishness, but shoppers are coming into showrooms and buying."

At Toyota, April deliveries fell 4.8 percent at the Toyota division and 1.3 percent at Lexus, with car sales at the two brands falling a combined 14 percent in April and light-truck volume up 1.9 percent. U.S. deliveries at Toyota have now dropped 6 straight months year over year. Toyota's Corolla sedan saw a 32.8 percent drop in deliveries while the Camry fell 2.1 percent in April.

Sources: Automotive News, automakers