U.S. vehicle sales rise 4.6 percent in April

(May 2, 2015) U.S. vehicle sales in April, led by demand for light trucks, rose 4.6 percent as every automaker but Honda recorded an increase. The industry stretched its streak of advances from the year-earlier month to 14 as total sales reached 1.46 million. But the results fell short of projections for a 5.9 percent gain.

The seasonally adjusted sales rate — 16.52 million — was also shy of estimates in the 16.7 million range. The pace of sales in April was down from March’s 17.1 million rate but up from 16.1 million in April 2014.

Fiat Chrysler's 5.8 percent advance from a year-earlier marked the automaker’s 61st consecutive monthly gain. Nissan Group and General Motors were back in the winning column after March sales declines. Ford ended a two-month skid, while Hyundai defied analysts’ forecasts of a drop.

After posting seven consecutive gains, Honda Motor Co. was down for a second straight month in April.  The company fell 1.8 percent from a year earlier, as a 5.3 percent gain at Acura failed to overcome a 2.7 percent decline at the Honda brand.

Toyota’s sales rose just 1.8 percent to 203,329— its smallest advance since deliveries rose 1.7 percent in September 2014 — on strong light truck demand. The Toyota RAV4 and Highlander crossovers logged their best-ever April results, and combined sales of the Tundra full-sized pickup and Tacoma midsize pickup rose by 9 percent.

“Light truck sales have carried the auto industry to its best start in 15 years,” Bill Fay, Toyota Division group vice president and general manager, said in a statement. “The demand for crossover SUVs is off the charts.”

Sales of pickups and utility vehicles led the way. They accounted for more than 55 percent of sales in April. "We're kind of in a familiar pattern here, with really strong demand for light trucks and SUVs really propelling the market," said Mark Strand, Autotrader manager of market intelligence.

General Motors' sales were up 5.9 percent to 269,056 vehicles — slightly higher than some industry analysts expected. Strong sales of the automaker's Chevrolet Equinox, new mid-size pickups as well as its luxury Cadillac Escalade and Escalade ESV, up 121.8 percent and 188.4 percent, respectively, led the way.

Cadillac and GMC brands enjoyed sales increases of 13.7 percent and 20 percent, respectively. Chevrolet also was up 3.4 percent, while Buick sales dropped 5.2 percent.

Overall, GM's trucks and crossovers posted double-digit sales increases in April, up 13 percent and 25 percent, respectively.

"At GM, truck and crossover sales have been strong all year, thanks to our increasingly deep and broad product portfolio," said Kurt McNeil, GM U.S. vice president of sales operations, in a statement.

The story was similar at Ford and FCA US, formerly Chrysler Group LLC.

Ford sold 222,498 vehicles last month, including an April record 62,730 SUVs. Ford utility sales rose 14.5 percent last month. Small cars continued to struggle, with Focus sales down 5.3 percent and C-Max sales down 15.2 percent. Ford said last week it will cut a shift at its Michigan Assembly Plant where it makes those vehicles.

"We had an incredible SUV month," said Mark LaNeve, Ford vice president, U.S. marketing, sales and service. "Really a breakout month."

Ford's sales gains were helped in part by strong demand for its new products. Edge sales increased 77.6 percent and Mustang sales rose 81.5 percent. F-150 sales continue to ramp up as inventory of the new 2015 model builds. Ford said the popular pickup is sitting on dealer lots for an average of 20 days. Average transaction prices last month reached a record $42,600, an increase of $3,200 from a year ago, and Ford said 60 percent of truck retail sales were of more expensive premium models like the King Ranch, Lariat and Platinum.

Lincoln sales rose 19.6 percent last month thanks mostly to sales of the Navigator, which rose 36.4 percent, and the new MKC.

FCA US sold more than 189,000 in April, led by double-digit gains of 26 percent and 20 percent for its Chrysler and Jeep brands, respectively. Ram Truck increased 4 percent, while the automaker's Dodge and Fiat brands were both down 16 percent and 13 percent, respectively.

Sources: Manufacturers, media reports