The Audi A3 helped the German maker to a 19% sales increase in April.
New models demonstrated their value to automakers in April as the latest cars and trucks launched over the past several months combined with a break in the frigid weather pulled buyers into showrooms, helping keep the annual sales rate at more than 16 million units for the second consecutive month.
Audi, Toyota, Subaru, Mercedes-Benz, Chrysler, Jaguar Land Rover and Kia Hyundai posted double digit sales increase in January thanks in part of the launch of new or replacement models. General Motors, which was deluged with bad news, also benefitted from the strong sales of its latest models. Luxury vehicles also enjoyed a strong April, with Audi among those reaping the rewards with a 19% increase.
“The launch of the all-new A3 Sedan gives Audi an even broader product portfolio and the opportunity to reach more luxury buyers in the premium compact segment,” said Mark Del Rosso, executive vice president of Audi of America. “In its first month of retail sales, the Audi A3 was a top seller in April, with over 2,000 vehicles sold.”
Chrysler's Jeep brand helped the maker to a 49th consecutive month of increased sales in April.
At Toyota, Lexus reported a 23.1% increase during April, including the new IS and GX, which more than doubled sales in April.
“The luxury segment has improved at a faster pace than the overall general industry through each of the first four months of the year,” said Jeff Bracken, Lexus group vice president and general manager.
Not only did several automakers see sales increase, they made more on each vehicle sold, according to Kelley Blue Book. The ATP for new vehicles increased by $389 (up 1.2%) from April 2013, while decreasing $47 (0.1%) from last month.
“Continuing their slow and steady increase, transaction prices are on the rise, but in conjunction with incentive spend, which forces them to offset one another,” said Karl Brauer, senior analyst for Kelley Blue Book.
BMW saw sales rise 10.6% during the month, although its Mini brand was down 34.2% in April. Ludwig Willisch, president and CEO, BMW of North America, said the German maker’s new diesel models in the X3 and 7 Series and the first sales this month of the born-electric BMW i3 bode well for May and June.
Luxury carmakers enjoyed a strong April, including BMW, which saw sales increase 10.6%.
GM reported a sales increase of 7% compared with a year ago. The sales jump was a pleasant departure from the steady stream of bad news for the automaker.
The company issued a spate of recalls in March and April endured negative publicity generated by the Congressional hearings in early April. Despite those difficulties, sales have not been impacted across the U.S., GM executives noted.
Meanwhile, Chrysler Group reported a 14% increase, including a 52% increase for the Jeep brand. Chrysler Group extended its streak of year-over-year sales gains to 49 consecutive months in April.
Nissan Group set an April U.S. record with 103,934 vehicles sold, an increase of 18.3% over the prior year. Nissan Division also set an April record. Honda followed suit with a small increase of 1.1%.
Ford Motor Co. reported a 1% sales drop but attributed it to a reduction in sales to rental fleets. Officials noted its F-Series pickups and Explorer sold well in April.
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John Felice, Ford vice president of sales, said the important news during April, was the steady improvement in the U.S. economy and consumer sentiment.
“We also saw another breakout month for Fusion, with continued strength in the Western region. Overall, industry sales continued the rebound from January and February and are on a path of steady growth,” Felice said.
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GM rode strong truck sales to a 7 percent sales increase in April.
Volkswagen of America, which has been eclipsed in sales race by Subaru through the first part of 2014, reported an 8.4% decline for April as sales of the Golf dried up. Golf wasn’t the only model that hit a dry spell: Jetta, CC, Beetle and Tiguan sales were all down. With the exception of Jetta, they were all down at least 19%.
One bright note was that sales of the Passat increased by 2.7% in the mid-sized segment where competition has been intense and pressure from mid-sized utilities has been intense. The German maker is counting on its TDI clean diesels and the new Golf this summer to help offset sales, which are down 10.4% for the year.
The April sales uptick kept the automakers on track to exceed 16 million units for 2014. AutoPacific forecasts a 2014 year-end total of 16.2 milion units. This forecast update represents less than a 1% increase over the company’s 2014 year-end forecast that was released in Q1.
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“While the challenging weather during the first quarter may have kept some buyers out of dealerships, year-end sales remain on track with AutoPacific’s original forecast, with a slight increase that aligns with the country’s economic recovery,” explains Ed Kim, vice president of Industry Analysis at AutoPacific.
“Auto sales continue to recover in step with improving economic conditions, albeit at a relaxed pace compared to preceding years. Industry sales have returned to healthy and sustainable levels, with strong margins seen throughout much of the industry.”