GM, Fiat Chrysler, Ford report strong July sales
America’s love affair with crossovers, pickups and sport utility vehicles has the auto industry on track for its best sales since shoppers’ last SUV infatuation 15 years ago.
Small crossovers such as the Buick Encore and Honda CRV as well as pickups and Jeeps are increasingly popular with consumers in 2015. Continuing to fall out of favor are cars, with sales down 2.9 percent last month compared to July 2014; as truck sales increased 12.9 percent.
“When you look at all the vehicles breaking the records, it’s on the heels of the SUV and trucks,” said Edmunds.com Director of Industry Analysis Jessica Caldwell. “Cars overall seem to be not doing as well.”
Automakers on Monday reported vehicle sales of more than 1.5 million in July, a 5.3 percent increase from a year ago. The results exceeded industry expectations. They represent an annual selling pace, also known as seasonally adjusted annual rate (SAAR), of 17.55 million cars and trucks. The SAAR is an estimate of what sales would be for the year if they continued at the rate of a single month.
The July rate was the second-best this year and brought the average through July to about 17 million, which means sales will likely hit or exceed 17 million in 2015 — a feat that hasn’t occurred since 2001.
Nearly every major automaker, including the Detroit automakers, posted sales gains of at least 5 percent in July compared to a year ago. Utility vehicles and pickups accounted for 55.7 percent of overall industry sales, up 3.7 percentage points from July 2014.
The Buick Encore small crossover and Chevrolet Silverado pickup were among the top performers for General Motors Co., which recorded a 6.4 percent increase in sales last month compared to July 2014. GMC Sierra pickup sales also experienced a double-digit sales gain, while the GMC Canyon and Chevrolet Colorado midsize pickups combined for nearly 10,000 vehicles sold.
“The second half of 2015 is off to a great start, with industry sales above expectations,” said Kurt McNeil, GM U.S. vice president of sales operations, in a statement. “GM has been steadily growing its commercial sales and retail market share, thanks to our strong truck and crossover portfolio.”
Every GM brand except Cadillac — down 7.1 percent — recorded year-over-year sales gains: Buick was up 17.6 percent; Chevrolet increased 7.8 percent; and GMC experienced a 1.4-percent uptick. GM sold nearly 1.8 million vehicles through July, a 3.9 percent increase from the same period in 2014.
Fiat Chrysler Automobiles last month posted a 6.2 percent increase thanks to its Jeep SUV brand — marking 64 consecutive months of year-over-year U.S. sales gains and the automaker’s best July since 2005.
“For FCA, it’s not Fiat that’s necessarily doing great,” Caldwell said. “Jeep is really carrying the torch there.”
Last month was Jeep’s best July sales ever and its 22nd consecutive month of year-over-year sales gains. It has set a sales record in every month dating back to November 2013.
Following Jeep’s 22.9 percent increase in July was the Chrysler brand, up 9.7 percent; Ram Truck up 1.2 percent; and the Dodge and Fiat brands with double-digit losses of 12.7 percent and 15 percent, respectively.
Ford Motor Co. sales rose 5 percent on strong demand for its new products like the F-150, Mustang and Explorer. It was the Dearborn automaker’s best July since 2006.
Ford’s SUV sales rose 11 percent compared to the same month a year ago. That includes the recently refreshed Explorer, which saw sales jump 27 percent. July marked the fourth time in the last decade that more than 20,000 Explorers have been sold in a month. The all-new Edge, which went on sale earlier this year, rose 17 percent.
After months of low supply and sluggish sales due to the changeover to the new F-150, F-Series sales rose 4.8 percent last month. Ford said average transaction prices continued to lead the segment at about $44,000, and it raised incentives about $1,000 on the popular pickup as part of its planned summer sales events. Supply is starting to tick upward; the automaker started the month with 87,500 trucks and finished with 89,500.
“Ford is finally getting some momentum with F-150,” said Michelle Krebs, senior analyst with Autotrader.com. “It looks like they’re finally out of the doldrums.”
Ford’s struggling Lincoln luxury brand experienced a strong 21.3 percent sales increase last month thanks to its all-new MKC small crossover, MKX midsize crossover and Navigator SUV. The new MKX hit showrooms last month, and Ford said the vehicle is selling after an average of six days on dealer lots.
Other automakers to report sales on Monday: Toyota Motor Sales USA reported sales rose 0.6 percent to 217,181; Hyundai Motor America sales were the best July ever, up about 6 percent to 71,013 vehicles sold; Subaru posted a 10.5 percent sales increase for its best sales month ever; American Honda Motor Co. was up 7.7 percent; Volkswagen of America was up 2.4 percent; Kia Motors America Inc. was up 7 percent; and Nissan increased 7.8 percent.
mwayland@detroitnews.com
(313) 222-2504