automotive

Domestics Benefit From Trucks, SUVs In August

Ford seems to have finally gotten its truck tread on pavement. August -- a month that many observers figured would represent a slowdown from a sizzling spring and summer -- has turned out to be as healthy as ever, especially for domestic brands with big truck and SUV portfolios. And gasoline prices definitely play a role, given the importance of trucks and SUVs to August sales volume. 

Kurt McNeil, GM’s U.S. vice president of sales, said August seasonally adjusted annual rate (SAAR) came in at 17.5 million units, the fourth month in a row above 17 million units. “All of the economic fundamentals that we look at, including job growth, disposable income and fuel prices, are in good shape and that should keep sales strong,” he said in a GM sales statement. Ford benefited from finally having strong F-150 throughput. 

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Ford delivered its best August U.S. sales in nine years with 234,237 vehicles sold, a 5% increase. And F-Series delivered its best August sales results since 2006, with total sales of 71,332 -- a 5% increase in sales versus a year ago. Ford said the new models of Edge and Explorer were up 36% and 22%, respectively -- driving a 12% increase in Ford brand SUV sales, to give the company its best August sales performance for SUVs since 2003.  

The automaker's Lincoln luxury brand increased by 6% versus a year ago -- posting its best volume in seven years, per the automaker, also driven by SUVs: Navigator posted a 79% increase, while Lincoln MKC sales increased 37%. It also looks like Ford has worked the kinks out of its F-150 production, which had hampered availability. Mark LaNeve, Ford vice president, U.S. marketing, said better supply helped F-Series. "We also had our best month of Ford SUV sales in 12 years.”

Akshay Anand, Kelley Blue Book senior analyst, said August could be a bellwether. “SUVs and trucks carried both Ford and Lincoln in a trend we’ve seen repeated over the last couple years across the industry ... it looks like the F-Series may be slowly starting to see an uptick in growth as well.”

KBB said Ford transaction prices are up over 5% thanks to trucks. And Ford's Transit Connect commercial vans are also selling very well. Karl Brauer, Kelley Blue Book automotive insights director, said the new, highly touted F-Series is besting the previous model’s volume, “And its higher transaction price means increased profits for Ford.” 

Over at General Motors, sales were flat with the year-ago month, but retail sales were way up, per the automaker, which posted sales of  270,480 vehicles in the U.S. last month. Dealership sales were up 6% while fleet sales were down 24% because of lower rental fleet volume. 

“GM’s retail sales increase far outpaced the industry in August, and we have grown our retail share for five months in a row compared to last year,” said McNeil. 

Trucks and SUVs drove action at Fiat Chrysler, as well. The company said the 2% sales gain for August was its 65th consecutive month of year-over-year gains, with FCA selling over 200,000 units for second time this year. Jeep sales were up 18%, for its best sales month ever with Wrangler, Cherokee, Patriot and Compass setting sales records. Ram pickup truck posted its best August sales volume in the brand's history.  

The import brands did not fare as well, but their trucks sold strongly. Toyota, which reported an 8.8% decrease versus last year, with Toyota Division down 10.5% percent saw strong sales trucks and SUVs, up 6% and setting an August record. Sales of the Nissan Rogue was over 29.2%; and the Murano crossover increased 4%.

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