Sales of products like the new Prius C drove Toyota to a more than 60% sales jump in June.
Jobs may still be scarce and Europe’s economic uncertainties may be threatening to drag the U.S. economy down again but you’d be hard-pressed to tell based on the unexpectedly strong performance of the U.S. auto market in June.
Japanese manufacturers reported strong double-digit gains, driven in part by comparison against last year’s disastrous June numbers – which reflected shortages caused by Japan’s March earthquake and tsunami. But U.S. makers also saw a surge in demand that resulted in some of the best sales Detroit manufacturers have seen in years.
Chrysler Group LLC and General Motors Co. both posted double-digit sales increases during June despite widespread economic uncertainty, while Ford Motor Co. finished the month with a modest single-digit increase.
Overall, the June numbers reflect an uptick in the Seasonally Adjusted Annual Rate, or SAAR, to more than 14 million — up from the 13.7 million SAAR posted for May, automakers said.
Chrysler sales improved by 20% last month as the automaker posted its best June figures in five years and its 27th-consecutive month of year-over-year sales gains, the maker ending the second-quarter with a 24% gain compared to the same period last year.
Nissan North America reported a 28% sales increase and Volkswagen of America rang up a 34% sales increase for June, while Toyota delivered a whopping 60% gain. Subaru, Kia, Hyundai ad Porsche also all reported health sales increase for June.
TrueCar.com projected that both Toyota Honda would both finish the month with the highest transaction prices they’d seen in several months. Edmunds.com, meanwhile, estimated that industry incentives for the month slipped 1.6% compared to May – and 0.8% compared to June 2011 – to an average $2,187 a vehicle. Buoyed by strong demand, Toyota was able to cut its givebacks to just $1,552 per vehicle.
June saw a number of makers set new sales records, including Korea’s second-largest automaker.
“Kia has been setting one sales record after another for nearly two years, and the ongoing popularity of our two U.S.-built products as well as the Soul have attracted new customers to our showrooms and dramatically raised awareness, perception and consideration for the brand in a very short period of time,” said Byung Mo Ahn, group president and CEO of KMA and KMMG.
However, there were also some signs that wavering consumer confidence was taking its toll on some automakers. Jaguar with a 2% sales increase and BMW with a 3.2% increase reported only minimal gains.
Nonetheless, automakers remained optimistic.
“June was another solid month for the Chrysler Group,” said Reid Bigland, President and CEO — Dodge Brand and Head of U.S. Sales. “June also marked our 27th-consecutive month of year-over-year sales growth. Continuous improvement remains a key focus at Chrysler as we have steadily increased sales, improved quality, added production and created jobs.”
Chrysler Group finished the month with a 67-day supply of inventory (358,260 units). U.S. industry sales figures for June are projected at an estimated 14.4 million units Seasonally Adjusted Annual Rate (SAAR).
GM reported June sales of 248,750 vehicles in the United States, up 16% year-over-year and the company’s highest sales since September 2008. Chevrolet, Buick, GMC and Cadillac all reported double-digit increases.
“Across the board, June was a strong month for GM,” said Kurt McNeil, vice president, U.S. Sales Operations. “The combination of new products, available credit, lower fuel prices and modest economic growth was a stronger influence on consumer behavior than economic and political uncertainty.”
Ford reported overall its sales have increased 7% during the first six months of 2012 with 1.14 million vehicles sold. June sales also increased 7% from last year, with 207,759 vehicles sold.
Ford sales are increasing across the company’s lineup — with cars up 3%, utility vehicles up 9% and trucks up 9% year to date. In June, the Ford Escape set an all-time monthly record — with sales up 28% — while the Ford Fusion set a record for June. Ford Explorer sales were up 35% from last year, and F-Series sales are up 11% and topped 50,000 for the first June in five years, Ford executives said.
“June was a good month for Ford and a particularly strong month for vehicles like Escape, Fusion, Explorer and F-Series,” said Ken Czubay, Ford vice president, U.S. Marketing, Sales and Service. “The new 2013 Escape also is off to a very strong start, with vehicles selling on dealer lots in less than five days — even topping the strong start of the new Explorer in 2010.”