U.S. New Vehicle Sales Continue to Tumble in June
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Sales of new vehicles continued to sputter in June with General Motors, Fiat Chrysler, and Ford reporting sales declines while rivals such Toyota, American Honda, and Nissan posted meager gains as the industry struggled to match last year’s record pace.
Fiat Chrysler Automobiles N.V. reported sales dropped seven percent in June compared with sales in June 2016. Much of the decline could be traced to a decline in sales of Jeep-brand products. With key model changeovers underway, Jeep sales dropped eleven percent in June and are down thirteen percent during the first half of 2017. So far this year, FCA sales have dropped seven percent.
In June, retail sales of 139,947 units were down five percent compared with the same month in 2016, and represented 75 percent of total sales. In line with FCA’s strategy to reduce sales to the daily rental segment, fleet sales of 47,401 units were down – as expected – fifteen percent year-over-year. The largest planned volume reduction in June fleet sales came from the Jeep brand, which reduced its fleet sales number by 49 percent year over year.
General Motors reported sales declined by 4.7 percent from the same period last year. However, in the fastest growing U.S. retail market segment, GM’s crossover retail sales were up 23 percent, due largely to the strength of Chevrolet Equinox, which were up 36 percent. Buick’s U.S. retail sales were up six percent.
GM’s incentive spending as a percentage of average transaction prices was twelve percent in June, equal to the company’s 2016 calendar year average, and lower than any domestic and many Asian competitors, according to estimates by J.D. Power & Associates, while GM’s average transaction price were $35,657, up nearly $400 per vehicle.
Ford Motor Co.’s June U.S. sales declined by 5.1 percent compared to last year. Retail results were flat versus last year’s retail results but fleet sales in June dropped 13.9 percent, Ford reported. For the first six months of 2017, Ford sales were down 3.8 percent.
Ford’s June average transaction pricing grew $1,800 another month of significant increase compared to the overall industry gain of $520.
Toyota Motor North America Inc., reported a sales increase 2.1 percent on both a volume and daily selling rate. For the first half of the year, TMNA reported sales declined 3.6 percent versus the same period in 2016.
Fiat Chrysler Automobiles N.V. reported sales dropped seven percent in June compared with sales in June 2016. Much of the decline could be traced to a decline in sales of Jeep-brand products. With key model changeovers underway, Jeep sales dropped eleven percent in June and are down thirteen percent during the first half of 2017. So far this year, FCA sales have dropped seven percent.
In June, retail sales of 139,947 units were down five percent compared with the same month in 2016, and represented 75 percent of total sales. In line with FCA’s strategy to reduce sales to the daily rental segment, fleet sales of 47,401 units were down – as expected – fifteen percent year-over-year. The largest planned volume reduction in June fleet sales came from the Jeep brand, which reduced its fleet sales number by 49 percent year over year.
General Motors reported sales declined by 4.7 percent from the same period last year. However, in the fastest growing U.S. retail market segment, GM’s crossover retail sales were up 23 percent, due largely to the strength of Chevrolet Equinox, which were up 36 percent. Buick’s U.S. retail sales were up six percent.
GM’s incentive spending as a percentage of average transaction prices was twelve percent in June, equal to the company’s 2016 calendar year average, and lower than any domestic and many Asian competitors, according to estimates by J.D. Power & Associates, while GM’s average transaction price were $35,657, up nearly $400 per vehicle.
Ford Motor Co.’s June U.S. sales declined by 5.1 percent compared to last year. Retail results were flat versus last year’s retail results but fleet sales in June dropped 13.9 percent, Ford reported. For the first six months of 2017, Ford sales were down 3.8 percent.
Ford’s June average transaction pricing grew $1,800 another month of significant increase compared to the overall industry gain of $520.
Toyota Motor North America Inc., reported a sales increase 2.1 percent on both a volume and daily selling rate. For the first half of the year, TMNA reported sales declined 3.6 percent versus the same period in 2016.
