A man works on the assembly line at the General Motors plant in Arlington, Texas. Market leaders General Motors Co and Ford both showed sales gains in July that were more than double analysts’ estimates.
Reuters/Detroit
US auto sales were stronger than expected in July and kept the industry on pace for its best year in a decade, driven by the continuing shift toward sport utility vehicles and pickup trucks.
Ford Motor Co said US auto industry sales of 1.55mn vehicles in July rose 6%, which would translate to an annualised rate of about 17.6mn to 17.7mn vehicles.
Analysts had expected a gain of about 3% over year-ago industry sales. Auto sales are seen by analysts totaling about 17.1mn vehicles this year, which would be the highest in more than a decade.
Ford said cheaper fuel prices and low interest rates helped boost sales.
Market leaders General Motors Co and Ford both showed sales gains that were more than double analysts’ estimates.
GM had sales of 272,512 vehicles, a rise of 6%, and Ford sales were up 5% as both benefited from strength in sales of their pickup trucks, the top two selling models in the market.
GM said the average price for its models sold was $33,800, up $530 from a year ago. GM shares edged up 0.2% to $31.58.
Ford’s F-Series sales alone topped those of all Ford and Lincoln brand sedans.
The F-Series total of 66,288 was up 5%. The GM Chevrolet Silverado showed sales of 56,380, up 34%.
Fiat Chrysler Automobiles sales rose 6% and Nissan Motor Co Ltd gained 8%, also outstripped expectations of analysts.
Each month, auto sales are seen as an early indicator of consumer spending.
Car-buying website TrueCar said a record $47bn was spent on new-vehicle purchases in July, up 2.l% from a year earlier.
Ford truck sales rose 5.7%, its utility vehicle sales jumped 13.4% while sedan sales fell 3.9%.
Sales of Ford’s SUV Explorer soared 27%, and its smaller SUV Escape had a 10% increase.
Ford shares rose 0.8% to $14.95.
For Fiat Chrysler, trucks and utility vehicles accounted for 74% of sales and were 10.4% higher than a year earlier, while sedan sales fell 6%.
FCA sales were led by a 23% increase for Jeep SUVs.
It was the 64th straight month that FCA sales increased on a year-over-year basis. Fiat Chrysler shares were up 3.1% to $16.29.
At Nissan, truck and utility vehicle sales rose 23% while car sales fell 1%. Sales of its Rogue small SUV jumped 51%.
Hyundai Motor Co said US July sales rose 6% to a company record 71,013 vehicles.
