June sales of light vehicles in the U.S. slowed considerably to a seasonally adjusted annual rate, SAAR, of 16.66 million compared to 17 million a year ago, and 17.45 million units in May. Total industry deliveries increased 2.5% compared to last June. Industry wide, 1,513,901 light vehicles were sold in June, compared to 1,536,276 in May of 2016, according to AutoData.
Some – if not all – analysts see the industry leveling after a steady climb in recent years, following the Republican and Wall Street induced Great Recession in 2008 and 2009. Trends remain consistent. Pickup trucks and crossovers accounted for ~58% of all sales last month, up 11.4% from June 2015. Passenger car sales were down -7.9% from a year ago. This is good news for the Detroit Three, but share prices continue to languish as they have for years. FCA is at $5.70, Ford Motor $12.55, and General Motors at $28.40.
The Detroit Three automakers finished June with a 45.7% share of the U.S. auto market, up from 44.2% last month and 45.2% a year ago. Their sales totaled 691,899 vehicles—up from 679,419 last month, 667,907 a year ago. They are up 3.6% over last June and 1.9% for the year-to-date.
Offshore brand auto sales dropped in June, but international brands still finished the month in the lead. Asian and European brands took 54.3% of the market, a decrease from a 55.8% share in May. Overall sales numbers were also down slightly from May as international brands sold 822,002 vehicles, compared to 856,857 last month.
Trump Alert
Irony here. Donald Trump’s position on trade matters – counter Republican dogma and actions – should have offshore brands worried. However, he has also singled out Ford Motor for moving jobs out of the U.S. under NAFTA. Worse, Trump is threatening to put a 35% tax on auto imports and cancel trade agreements. This is irresponsible at best.
“While the pace of sales may have buy generic accutane online slowed, international nameplate dealers are enjoying steady and reliable numbers,” said AIADA President Cody Lusk. “Sales numbers can’t climb indefinitely, so June’s results may be a sign of a healthy industry hitting its stride.”
Kia saw sales rise 15.6% in June, Nissan saw an improvement of 13.4%, and Chinese-owned Volvo’s sales rose 43.5% – on the strength of its XC90 crossover.
Asian brands had a 45.5% share of the market, down from 47% last month. Overall, these brands sold 688,417 units in June, down from 721,311 last month. but up from 669,697 a year ago. Sales included 259,426 North American-sourced cars and 233,621 North American-sourced trucks. May sales for Asian brands were up 2.8% over last June and 2.1% for the year-to-date.
European brands sold 133,585 vehicles for 8.8% of the market—equal to their market share last month. Overall sales were down slightly from 135,546 vehicles in May and 139,071 vehicles in June 2015. European-brand sales included a paltry19,032 North American-sourced cars and 16,499 North American-sourced trucks. Overall Euro sales are down 3.9% compared to last June and 4.1% for the year-to-date.
Top Ten Sellers
Six of the Top Ten selling vehicles in June were from nameplates made by Honda, Nissan, and Toyota. The Toyota Camry continued to lead all U.S. car sales, finishing the month in fourth place behind the Ford F-Series, Chevrolet Silverado, and Ram pickup trucks. In sixth place, the Toyota Corolla also remained a formidable competitor for Detroit Three bands, which basically can’t compete in the shrinking car market, a problem that extends back – at least – ingot the 1970s. Two strong Honda entries, Civic and CR-V, sat comfortably in fifth and eighth places, respectively. Nissan—with the strong Altima sedan and Rogue crossover – saw the mid-size Altima took the seventh spot for the month. The highly-styled Rogue crossover SUV took ninth.
