Sluggish U.S. Auto Sales in June Reflect Broader Economic Concerns

Strategic Insights -

U.S. light vehicle sales rose a modest 2.4% in June from the same month last year, reaching a seasonally adjusted annualized rate of 11.41 million vehicles. This climb was overshadowed by the declines of Japanese automakers, which suffered due to supply shortages caused by the earthquake and tsunami in Japan. General Motors Co. and Ford Motor Co. reported 10.2% and 13.6% sales growth respectively, while Chrysler Group LLC experienced a 30% surge in sales, its best since 2007.

Key Takeaways:

  • U.S. light vehicle sales rose 2.4% in June to a seasonally adjusted annualized rate of 11.41 million vehicles.
  • Sales at General Motors Co. increased 10.2% to 215,358 vehicles, with retail sales contributing 16% to overall sales growth.
  • Ford Motor Co. saw sales escalate 13.6% to 194,114 vehicles, driven by car and utility sales growth.
  • Chrysler Group LLC experienced a 30% surge in sales to 120,394 vehicles, the best since 2007.
  • Japanese automakers, especially Toyota Motor Corp. and Honda Motor Co., suffered due to supply shortages.
  • Total sales of all major automakers inched up 7.1% to 1.05 million vehicles.
  • General Motors Co.'s top-selling passenger vehicles during the month were the Chevrolet Cruze car, Silverado pickup, and Malibu car.
  • Fiat SpA, through its control of Chrysler Group LLC, saw a remarkable turnaround in sales.
  • The combined market share of GM, Ford, and Chrysler rose to 50.1% in June.

Statistics:

  • 2.4% increase in U.S. light vehicle sales in June from a year ago.
  • Seasonally adjusted annualized rate of 11.41 million vehicles sold in June.
  • 10.2% increase in sales at General Motors Co.
  • 13.6% rise in sales at Ford Motor Co.
  • 30% surge in sales at Chrysler Group LLC.
  • 215,358 vehicles sold by General Motors Co.
  • 194,114 vehicles sold by Ford Motor Co.
  • 120,394 vehicles sold by Chrysler Group LLC.
  • 11.8 million annualized rate of sales in May 2021.
  • 11.14 million vehicles sold in June 2020.
  • 1.05 million vehicles total sales in June.
  • 46% retail sales improvement for Chrysler Group LLC in June.
  • 50.1% combined market share of GM, Ford, and Chrysler in June.

Sources:

  • Zacks.com, "Sluggish U.S. Auto Sales in June Light Vehicle Sales in the U.S. rose a tad by 2.4% to a seasonally adjusted annualized rate of 11.41 million vehicles in June from 11.14 million vehicles in the same month last year."
  • Thomson Reuters/University of Michigan, "U.S. consumers' confidence fell more than anticipated in June."
  • New York-based Conference Board, "percentage of consumers planning to buy a new vehicle within six months fell to 3.1%, the lowest since December 2010."
  • Edmunds.com, "auto sales will recover in the second half of the year and annual deliveries will improve to 12.9 million vehicles."
  • Zacks Investment Research, Inc., "Zacks Equity Research provides the best of quantitative and qualitative analysis."
  • Autodata, "market share of the combined companies have shot above 50%, since August 2009."