With sales surging on booming demand for the large SUVs and pickup trucks, the Detroit three were in a great position to profit from the setup, as they wrap a great first half year.
General Motors, which was predicted to increase deliveries by three percent by analysts, actually posted a decline of three percent, as the biggest US automaker and the third largest in the world decided to drop sales to rental-car companies by 45 percent because they are less profitable. GM’s retail sales, a better indicator of the state of the company deliveries, were actually up seven percent. Both GM and Ford actually made inroads lifting their average transaction prices, particularly for the already high revenue-providers SUVs and trucks. Ford reported the best gains in terms of vehicle pricing, jumping 6.6 percent from last year, said Kelley Blue Book. GM also said average transaction prices soared by around $1,000 from June 2014.
Ford’s sales increase was of two percent, missing analyst estimates. The automaker’s SUV roster sales jumped 10 percent, but passenger car sales slid 3.5 percent and the F-Series pickups dropped 8.9 percent as the automaker continued to build inventory of the hot-selling aluminum-bodied F-150. “We’re at full production right now, but not full availability,” commented Mark LaNeve, Ford’s U.S. sales chief.
Meanwhile, the third largest US carmaker, FCA US, reported the 63rd consecutive month of increases, with deliveries up 8 percent on the continued strength of the Jeep brand and booming demand for SUVs and pickup trucks from the Ram brand. “June represented another strong month for our company with sales up 8 percent and our 63rd-consecutive month of year-over-year sales increases,” said Reid Bigland, Fiat Chrysler’s US sales boss. The Jeep brand jumped 25 percent and the Chrysler core brand also rose 28 percent.
Via Reuters, Bloomberg