US Auto Sales Disappoint in June, Despite Boost from Foreign Automakers

Strategic Insights -

US auto sales slowed in June, defying expectations of a 1.4% decline. Instead, industrywide sales rose 0.2% to 1.61 million cars and light trucks, according to the Autodata Corporation. Monthly records by Toyota Motor, Honda Motor, and gains from other overseas makers, including Volkswagen, helped surprise analysts. Despite this, record gasoline prices, rising interest rates, and stock market declines may be taking the wind out of a yearlong buying spree.

Key Takeaways:

  • Sales of North American-built cars and trucks fell 5.8% at General Motors and 3.1% at Ford, while DaimlerChrysler's sales excluding Mercedes-Benz fell 9.8%.
  • Industrywide sales rose 0.2% to 1.61 million cars and light trucks, with Toyota Motor reporting a 7.8% gain and Honda Motor saying sales rose 16%.
  • Volkswagen of Germany saw sales rise 9%.
  • General Motors sold 459,994 North American-built cars and light trucks, a bigger decline than the 5.2% average analyst forecast.
  • Ford sold 401,680 North American-built cars and light trucks, down 3.1% compared with the 2.3% decline forecast.
  • DaimlerChrysler's sales of the Chrysler arm fell 8.6% to 233,516, with sales of minivans falling 25%.
  • Analysts expect US auto sales to cool the remainder of the year due to higher interest rates and declines in the stock market.

Statistics:

  • Industrywide sales rose 0.2% to 1.61 million cars and light trucks in June.
  • Sales of North American-built cars and trucks fell 5.8% at General Motors and 3.1% at Ford.
  • DaimlerChrysler's sales excluding Mercedes-Benz fell 9.8%.
  • Toyota Motor reported a 7.8% gain in sales.
  • Honda Motor saw sales rise 16%.
  • Volkswagen of Germany saw sales rise 9%.
  • Record gasoline prices reached $1.681 a gallon in June.
  • The US auto sales boom began in earnest in May 1999, when the annual selling rate hit 17.3 million.
  • Until last year, 15 million was considered a strong performance.

Sources:

  • Associated Press
  • Autodata Corporation
  • DaimlerChrysler
  • General Motors
  • Ford Motor
  • Volkswagen of Germany
  • Toyota Motor
  • Honda Motor