While the Nissan brand slipped in April, its Infiniti luxury brand gained on demand for the new JX crossover.
While several major makers have yet to weigh in, preliminary numbers confirm that the U.S. new car market continued gaining momentum in April – though there were a few setbacks, notably for the two largest of the domestic makers.
But it is likely to wrap up as another month of record-setting sales for at least some makers, including Volkswagen of America, which enjoyed its best April in more than 40 years. Chrysler, meanwhile, posted yet another a double-digit sales increase. Preliminary numbers for Japanese makers are mixed, Nissan reporting a rare down month while Toyota, still recovering from last year’s shortages, reported an 11.6% gain for the month.
But both Ford Motor Co. and General Motors posted sales declines as the automakers reduced fleet sales. Despite the setback, however, GM raised its full-year light vehicle sales forecast to the range of 14.0 million to 14.5 million units from earlier estimates of 13.5 million to 14 million units. A growing number of industry analysts now believe 2012 could wrap up with sales in the low to mid-14 million range.
“The demand and enthusiasm for our products continues at a strong pace and we are beginning to see the fruits of our investments pay off, marking the best April in over forty years,” said Jonathan Browning, President and CEO, Volkswagen Group of America, Inc. “As our sales continue to outpace the industry, we are investing in our infrastructure to ensure sustained growth.”
Chrysler Group posted its 25th consecutive month of sales increases during April. The Chrysler, Jeep, Dodge and Ram Truck brands each posted gains in April compared with the same month a year ago, while the FIAT brand’s sizable 336% year-over-year jump was the largest percentage increase of any Chrysler Group brand – and suggested that after a painfully slow start the little Fiat 500 might finally be gaining some traction.
Chrysler Group also beat the industry average sales increase for the 14th-consecutive month. In doing so, several Chrysler Group models shattered sales records. The Fiat 500, Chrysler 200 mid-size sedan,
Dodge Challenger muscle car and Jeep Wrangler SUV each set new sales records for the month of April. The sporty Dodge Avenger mid-size sedan, which posted a 47% sales gain, set an all-time sales record.
“April was another strong month for Chrysler as…we recorded our 25th-consecutive month of year-over-year sales growth and we reported our strongest quarterly profit in 13 years,” said Reid Bigland, President and CEO – Dodge Brand and Head of U.S. Sales. “This business is all about product and the quality and fuel efficiency of our current vehicle line-up has never been better which is evident in our results.”
Things weren’t so good for General Motors and Ford Motor Co. Both wound up posting small declines last month as orders by fleet customers dropped – but the makers have repeatedly stressed plans to curb traditionally low-profit fleet business, especially to the daily rental companies.
GM reported April sales of 213,387 vehicles in the United States. Retail sales were essentially equal to April 2011. GM’s fleet sales declined 25% due to the timing of rental customer deliveries, as previously indicated. As a result, total sales were down 8%.
“We expect gradual improvement in the economy going forward,” said Don Johnson, vice president, U.S. Sales Operations. “Over time, strength in the manufacturing sector and strong retail sales will lead to more job creation. That will help more consumers put the recession behind them, gain even more confidence and drive vehicle sales higher for both the industry and GM.”
GM’s two newest vehicles, the Chevrolet Sonic and the Buick Verano, both of which are built at GM’s assembly plant in Orion Township, continue to perform well. Chevrolet Sonic sales were 38% higher than the vehicle it replaced. Buick Verano sales reached 2,989 units and have increased each month since it went on sale in late November 2011. In addition, Chevrolet Volt sales of 1,462 units were strong nationally but limited by availability of vehicles in California, where GM is launching a model that qualifies for high-occupancy vehicle lane access.
Overall, Ford posted a 5% sales decline for April. Sales of some of Ford Motor Company’s most fuel-efficient vehicles grew again in April, however, with the Ford Fusion and Edge setting all-time April records, Fusion set an April record with 21,610 sales. Focus sales were up 13% for the month, totaling 19,425 cars. Year-to-date Focus sales are up 57%, marking the strongest start for Focus since 2001.
While most of the Asian and European makers have yet to report in, Toyota did announce an 11.6% gain. Of course, that has to be compared with the first month after the March 2011 earthquake and tsunami that devastated Northeast Japan and all but shut down the nation’s auto industry. For most of the rest of the year, Toyota and its competitors faced moderate to severe product shortages.
Analysts suggest that the maker is gaining traction both from pent-up demand among buyers who waited for products like the new 2012 Camry and from the added momentum of recent marketing and incentive campaigns.
The other Japanese maker to report in early, Nissan, revealed an unexpected drop for April, combined sales for its Nissan and Infiniti brands dipping 0.3%. But the luxury marque itself gained 5.4% for the month, buoyed by the new 3-row JX crossosver. And the Nissan Rogue and Versa models set new April records, driven by demand for more fuel efficient cars and crossovers in the face of near-record U.S. gas prices. Perhaps counter-intuitively, Nissan also reported strong sales of big truck models like the full-size Titan pickup and Quest minivan.
Paul A. Eisenstein contributed to this report.