Ford, GM, Chrysler US Sales in July Did Not Reach Expectations image

GM, Ford and Chrysler posted disappointing sales in the US in July, due to low demand for several popular models.

RBC Capital Markets analyst Joe Spak said that annual sales rate for last month would reach 15.4 million vehicles, lower than analysts’ expectation of 15.8 million units. Chrysler, Ford and GM posted strong truck sales thanks to a revival in the oil and housing industries, but car sales could not reach estimates.

Ford’s U.S. sales analyst, Erich Merkle, said during a conference call that low supply of several models, including the Fusion and the Focus, affected the automaker’s sales in July. Last month GM sold 234,071 units, up 16%, under analysts’ expectation of 243,134 units. GM predicts that annual sales rate in July would reach 15.7 million units.

Ford’s sales in July increased 11% to 193,715 units, compared with analysts’ prediction of 200,000 units. Fusion sales dropped 12% and the Escape fell 3.6%. Sales for the Focus model increased 1.9% and the Explorer rose 12.6%.

“We’re working really, really hard to expand the capacity as needed,” said Ken Czubay, Ford’s vice president of U.S. marketing, sales and service.

Chrysler sold 140,102 vehicles, compared with the expected 146,275 units. July industry sales were led by increasing demand for full-size pickup trucks. Ram truck sales increased 31%, Ford’s F-Series trucks were up 22.6% and GM’s full-size pickup trucks jumped 44%.

Source: Reuters