automotive

Trucks, Small Cars Drive June Traffic

It was the best June since 2006 for Ford, whose sales were up 13% over last year. The new Escape compact SUV drove the action, with a fifth straight record month. The company's F-150 pickup, tracking the increase in housing starts, had its best month since 2005. While SUVs were up 8%, and trucks up 20%, the company had its best small car performance in 13 years, a major point of achievement, as 13 years ago Ford -- and all Detroit automakers -- were still leaning hard on truck-based SUVs and trucks to support volume and justify market share. 

The General also had good numbers, posting its highest sales volume for its four brands combined since 2008. Pickups drove sales, as Sierra and Silverado (GMC and Chevrolet, respectively) were up 29% last month. The company posted 14% improvement in retail sales overall. 

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General Motors has launched several vehicles in the last several months, most of them under the Chevrolet brand. 

“America’s families are better off than they were at the beginning of the year and they believe – with good justification – that the economic expansion is going to continue,” said Mustafa Mohatarem, GM chief economist, in a statement. 

Chrysler posted its 39th consecutive month of sales gains, with an 8% improvement over last year. The Grand Cherokee posted its best month in eight years, per the company, which said it was the company's second-best seller after Ram pickup. The Ram and Dodge divisions increased 23% and 12% versus last year, respectively.

Toyota reported a 14% improvement versus last June (and reported that Camry has hit the 10 million-sold mark in the U.S.). Honda saw a 9.7% increase versus last June, with Honda division up 12.5%. Honda CR-V, Pilot and Odyssey drove sales. Acura,which has just launched a new campaign by its new AOR Mullen, saw a 10.4% sales slip.

Michelle Krebs, senior industry analyst for Edmunds.com, says Chrysler's numbers are better than they seem because of lower fleet and healthy transaction prices. "Chrysler incentives are down significantly from May, and the automaker is lowering its previously oversized percentage of daily rental car sales. That's better for the bottom line, and it puts Chrysler buyers in a better position for resale value." She notes that GM did well in small cars and pickups, but not so much with the midsize Malibu. 

"The selldown of 2013 Chevy Silverados and GMC Sierras make it an excellent time for truck buyers to jump into the market. And Chevy Cruze's 73% increase is impressive no matter which way you slice it," said Krebs. But Malibu is down 32%, she notes. It is competing against a raft of new and recently launched vehicles from competitive brands: the new Honda Accord was up 30%. Nissan brand, up nearly 30% last month, saw record volume last month for its Altima, with sales up over 23%. Volkswagen posted a 6% improvement in sales for the Passat sedan.

Same story for Ford, which saw soft sales for its midsize Fusion, though that likely has more to do with tight supply than soft demand.

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