Ford and Fiat Chrysler Post Sales Gains in June While GM Slips
Updated from 10:19 a.m. with information on Toyota's sales.
Several automakers posted strong year-over-year sales gains for June in the U.S., while No. 1 producer General Motors (GM) - Get Report saw sales fall slightly for the month.
Ford (F) - Get Report , the No. 2 U.S. producer, said vehicle sales for the month rose 6.4%, paced by strong demand for pickup trucks and SUVs. Sales of Ford's F-Series pickups, newly redesigned with an aluminum body, rose 28% for the month. Fiat Chrysler Automobiles 's (FCA) - Get Report, paced by Jeep and Ram trucks, saw sales rise 6.5%.
GM has guided analysts by explaining that it is trimming sales to daily-rental fleets, which generate less profit. Retail sales to individuals rose 1% for the month, the company said, led by strong gains by the Cadillac brand. Overall sales in June at GM declined 1.6%.
J.D. Power and LMC Automotive had forecast that U.S. light-vehicle sales for June were expected to rise 5% to 1.55 million.
Toyota (TM) - Get Report sales fell 5.6% from June a year ago. The Japanese automaker -- No. 1 worldwide -- has struggled to keep up with demand for SUVs and crossovers in the market shift away from passenger cars.
Nissan (NSANY) said light-vehicle sales for the month were up 13%.Auto stocks, which were hit hard following the decision of U.K. voters to leave the European Union, have recovered much of their losses in the week following the referendum.
"Strong Jeep and Ram Truck brand sales fueled our best June sales in 11 years," said Reid Bigland, Fiat Chysler's senior vice president. "In spite of some severe stock market volatility in June, the American consumer stayed focus on buying new vehicles and propelled FCA to six vehicle sales records last month."
Analysts and some car dealers have been looking for signs of a cyclical downturn, noting that the expansion of the U.S. vehicle market has reached a historically unprecedented length of more than six years. Yet, low interest rates, a low unemployment rate and discounting by the automakers have kept sales relatively brisk.
Doron Levin is the host of "In the Driver Seat," broadcast on SiriusXM Insight 121, Saturday at noon, encore Sunday at 9 a.m.
This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.