U.S. light-vehicle sales rose 1% year over year to 1.42 million
in Jun 2014. The weak increase is mainly due to two less selling
days in Jun 2014 compared with Jun 2013. In the first half of 2014,
U.S. light-vehicle sales improved 4% year over year to 8.17 million
Sales on a seasonally adjusted annualized rate (SAAR) basis
increased to 17 million in Jun 2014 from the year-ago level of 15.9
million units. This is the first month since Jul 2006 in which SAAR
reached 17 million.
The major automakers reported mixed results. While
General Motors Company
Toyota Motor Corp.
Nissan Motor Co. Ltd.
) and Chrysler posted sales growth, sales at
Ford Motor Co.
Now, let us look at the U.S. sales figures reported by the
General Motors recorded 267,461 vehicle sales in June, up 1%
year over year. Retail sales also increased 1%, while fleet sales
improved 2%. After eliminating the effect of 2 less selling days,
total sales, retail sales and fleet sales recorded an improvement
of 9%, 9% and 10%, respectively.
Ford reported a 6% decline in total sales from the year-ago
period to 222,064 vehicles in Jun 2014. Retail sales fell 5% year
over year to 145,989 units and fleet sales plunged 7% to 76,075
Chrysler Group - controlled by Italy's
) - recorded a 9% year-over-year rise in sales, pulling the figure
up to 171,086 vehicles. Chrysler witnessed a year-over-year
increase in monthly sales for 51 consecutive months, which is
impressive. Moreover, this is the best June sales for the group
Toyota's sales increased 11.9% year over year on daily selling
rate (DSR) basis and 3.3% on volume basis to 201,714 units in Jun
2014. Sales in the Toyota division improved 2.5% based on volume
and 11% on DSR basis to 178,196 units. Lexus sales rose 19.3% on
DSR basis and 10.1% on volume basis to 23,518 units.
Honda Motor Co., Ltd.
) recorded a 5.8% year-over-year decrease in sales on volume basis
to 129,023 vehicles in Jun 2014. Sales on DSR basis increased 2.1%.
Sales in the Honda Division decreased 4.3% on volume basis but rose
3.6% on DSR basis to 117,817 units. Sales of the Acura Division
fell 18.6% on volume basis and 11.8% on DSR basis to 11,206
Nissan Motor posted a 5.3% year-over-year increase in sales to
109,643 vehicles in June. Sales in the Nissan division also climbed
6.4% to 101,069 units. However, sales of the Infiniti Division fell
5.9% to 8,574 units in the month.
The strong U.S. auto sales in the first half of 2014 is expected
to continue in the second half as well. High incentives by
automakers, low interest rates, the rising employment rate,
increasing consumer confidence and recovery of the housing market
are some of the factors driving sales.
Moreover, with the improvement in the general economic
situation, banks are offering more car loans with lower interest
rates and longer repayment periods. Further, the high average age
of cars on the U.S. roads is resulting in high replacement demand
for cars as well as car parts.
In the long run, sales are expected to rise on the back of
pent-up demand, improving macroeconomic conditions and easier car
financing. As the automobile industry is a major contributor to the
U.S. economic growth, improving auto sales will help in reviving
the overall U.S. economy.
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