U.S. auto industry gets big sales boost in May

(June 4, 2014) May turned out to be one of the best sales months in years for the U.S. automotive industry as most automakers — including the Detroit "Big Three" — posted gains over May 2013 sending the annualized pace of sales shooting up to 16.8 million.

May sales were led by big gains at Nissan, Toyota, Chrysler and General Motors representing an 11.4 percent rise over last year as a raft of discounts and extended holiday deals drew consumers to showrooms.


The 16.8-million sales pace is the highest for the seasonally adjusted SAAR (Seasonally Adjusted Annual Ra
te) since July 2006 and marked the third consecutive month the rate has topped 16 million after a weaker-than-expected start to the year.

Chrysler Group’s 16.7 percent sales gain led the way, followed by GM’s sales increase of12.6 percent and Ford’s 3 percent boost from the same month a year ago. Automakers across the industry benefited from growing truck, SUV and car sales. Shoppers bought nearly 1.61 million vehicles in May.

GM sales of 284,694 vehicles in May marked its best May in seven years and best month since August 2008, as GM grew market share 0.2 percentage points to 17.7 percent. The Detroit automaker was aided by strong car sales, a 14.2 percent sales jump for Chevrolet vehicles, higher sales to retail consumers and a higher-than-expected 21 percent gain in fleet sales. GM warned its fleet sales will be down sharply in June.

Analysts say GM’s May sales performance — followed by sales increases it posted in March and April in the height of the ignition-switch recall issue — indicate consumers aren’t fazed by the automaker’s record 30 recalls this year, including many announced in May. The company also told dealers to stop selling some popular SUVs late in the month due to recall problems.

Chrysler continued its sales momentum in May, selling 194,421 vehicles and posting its best May since 2007. The Jeep, Dodge, Ram and Fiat brands posted sales gains, led byJeep’s 58 percent surge to more than 70,000 sales in the month. Chrysler-brand sales fell 22.3 percent with the end of 2014 Chrysler 200 sedan and convertible production; the new 2015 Chrysler 200 began arriving at dealerships in May with more expected in July.

“Our Jeep sport utility vehicles and Ram pickups continued to do well in May as our dealers reported brisk May sales,” Reid Bigland, Chrysler’s head of U.S. sales, said in a statement. “For the third consecutive month, our Jeep brand recorded its best sales month ever, helping Chrysler Group to achieve its 50th consecutive month of year-over-year sales gains.”

Ford sold 253,346 vehicles, as Fusion and Escape set sales records. Ford’s popular F-Series truck sales fell 4.3 percent year-over-year. John Felice, Ford vice president of U.S. marketing, sales and service, said the automaker could have sold more pickups if it had boosted incentives; but it is building truck inventory to get it through 13 weeks of production downtime at truck plants as it transitions to the 2015 Ford F-150, featuring an aluminum body, late this year.

That downtime will cost the automaker production of more than 90,000 trucks, eating into profits and market share on trucks this year, Joe Hinrichs, Ford’s president of the Americas, told reporters this week.

Nissan reported a 19 percent rise in May sales — its second straight month of double-digit gains. The Nissan brand set a May record of 125,558 units sold, up 18 percent, and Infiniti volume advanced 31 percent to 10,376.

The Altima, Sentra, Rogue, Versa and Juke — all core models — each set May U.S. sales records. Overall, the Nissan brand has now set sales records in 14 of the last 15 months.

Toyota sales jumped 17 percent to 243,236 units. Volume rose 12 percent at the Toyota division behind Camry, Corolla, and Prius demand, while Lexus deliveries advanced 17 percent.

Hyundai set an all-time monthly sales record in May of 70,907 units, up 4 percent over May 2013. The company cited gains of 20 percent or more in sales of the Tucson, Santa Fe, Genesis and Equus.

Kia set a monthly sales record of 60,087 units, a 15 percent increase over May 2013. Last month also marked the first time Kia has generated more than 60,000 monthly U.S. sales.

Three core models — the Accord, Civic and CR-V — helped Honda to a 9 percent increase in May sales. Deliveries rose 10 percent at the Honda division and 2 percent at Acura. Honda officials, noting the launch of the all-new Fit this month, said the brand remains well-positioned heading into the second half of the year.

“Our dealers are preparing for heavy customer traffic in the coming months,” said Jeff Conrad, Honda division senior vice president and general manager.

Audi, aided by the redesigned A3, said deliveries rose 26 percent to 16,601 vehicles, which is the brand’s second-best month ever and its 41st consecutive month of record sales.

The U.S. launch last month of the Macan crossover helped Porsche set an all-time monthly sales record of 4,609.

Sales at Mitsubishi Motors Corp., driven by the Outlander Sport and revamped Mirage, rose 54 percent. It was the third consecutive month the company’s deliveries surged by 47 percent or more.

The lone May sales disappointment was at Volkswagen where sales slumped 15 percent, stretching its skid to 14 months.

Sources: Manufacturers and press reports