Chrysler posted a but fell short of what analysts had expected.
Chrysler, which is controlled by Fiat, reported sales in May of 150,041 vehicles, an increase from 115,363 units in the same period 2011. Although this was the best May sales performance for the company in the last 5 years, the results didn’t reach the analysts’ expectations. The other auto makers’ sales reports were issued later today.
Economists expect a May annual sales report of 14.5 million vehicles. Some industry officials predict this rate to be higher due to the warm weather earlier this year which pulled demand up and brought stronger than expected sales, but also due to the falling gas prices. It’s been several months since the auto sales have been one of the bright spots in the overall economy.
One of the main reason for this sales growth would be the US increasing need to replace old trucks and cars, which hit a record 10.8 years on average. The Q1 high fuel prices convinced consumers to change their old, less fuel-efficient cars for new ones. But now, the gas price falling again, may bring a moderation in new car sales in the second and third quarters.