U.S. buyers snapped up new
cars and trucks in June at a pace not seen since before the recession. Continuing
demand for full size pickups helped boost sales for Detroit's automakers. Ford announced Tuesday that its sales
rose 14 percent, while Chrysler's
gained 8 percent and General Motors'
rose 6.5 percent. Japanese automakers reported solid gains as well. Nissan's sales jumped 13 percent,
while Toyota's were up 10
percent.
But Volkswagen's sales dropped 3 percent
in June, the third straight monthly decline for the German car company. Other
automakers will report sales later today.
Analysts say they don't see
much that could slow the sales momentum of the first six months. The factors
that spiked sales—low interest rates, wider credit availability, rising home
construction and hot new vehicles—are likely to remain in place. So far, hiccups
in the stock market, higher taxes and fluctuating gas prices haven't dampened
demand.
"I think the
fundamentals for continued growth in the new vehicle sales industry are
intact," Chrysler's U.S. sales chief Reid Bigland said last week.
Analysts estimate that U.S.
auto sales rose 6 percent to 8 percent in June compared with the same month
last year. The auto pricing site TrueCar.com predicts that dealers sold cars
and trucks at an annualized rate of 15.7 million last month, the best rate
since December 2007.
Sales of pickups—which have
been selling at a rate three times faster than the rest of the
industry—continued at a strong pace in June. Ford sold just over 68,000
F-Series trucks, up 24 percent from last June and the best June for trucks
since 2005.
Chrysler Group sold nearly
30,000 full-size Ram pickups, up 24 percent from last June. Small businesses
have been replacing their aging trucks as home construction has picked up. GM
said sales of the Chevrolet Silverado jumped 29 percent to 43,259, while
Chrysler Group sold nearly 30,000 full-size Ram pickups, up 24 percent from
last June.
Young graduates may have
contributed to a rise in small-car sales, said Kelley Blue Book analyst Alec
Gutierrez. Gas prices,
which averaged $3.60 a gallon nationwide in June and were higher than a year
ago, also may have caused some buyers to look for more fuel-efficient models,
he said. Sales of Ford's recently updated Fiesta subcompact more than doubled
to 9,363, while Chrysler sold nearly 6,500 Dodge Dart small cars.
Consumer confidence hit a
six-year high in June. And the Standard & Poor's 500 index had its best
first half since 1998, up 12.6 percent, although there was some volatility late
last month. At the same time, auto loan rates remained near historic lows in
June. The rate on a four-year new-car loan is averaging 2.7 percent, according
to Bankrate.com.
Ford said two of its best
sellers, the Fusion sedan and Escape SUV, were flat compared with last year,
when Ford was discounting older models to make way for the updated ones that
are now on sale. Ford's Lincoln luxury brand was down 1 percent.
Chrysler, majority-owned by Fiat SpA of Italy, also had some
weak spots. Jeep sales were flat as the company halted production of the
Liberty to get ready for the launch of the new Jeep Cherokee in August.
Jeep may also have been
squeezed by Chrysler's public flap with the government last month over the
safety of some older-model Jeeps. And sales for the Chrysler and Fiat brands
both rose 1 percent.
—By AP