U.S. Auto Sales Back on Track in April--2nd Update
May 03 2016 - 10:20AM
Dow Jones News
By Anne Steele
After a sluggish start to the year, U.S. light-vehicle sales
regained momentum in April as cheap credit, low gasoline prices and
rising consumer confidence helped drive more buyers to
showrooms.
Analysts forecast industrywide sales will rise 5% in April to
set a new monthly high and the selling pace will eclipse
17.5-million vehicles, putting the auto industry back on track to
beat last year's sales record.
Fiat Chrysler Automobiles NV on Tuesday posted a 5.6% rise in
April sales, driven by continued demand for its Jeep brand. It was
the Italian-U.S. auto maker's best April in 11 years as Jeep brand
sales climbed 17% for their best April yet, with the Renegade and
Compass logging their best monthly sales ever.
Ford Motor Co. logged 3.6% growth to 229,739 light vehicles sold
in the month. Ford brand SUVs saw their best April sales ever,
while F-series pickups passed the 70,000 mark for a second
month.
General Motors Co.'s U.S. sales fell 3.5% in the month due to a
pullback on fleet business. Retail sales rose 3.3%, helped by
stronger sales at its Buick, GMC and Chevrolet brands.
"Following a disappointing March, we expect sales to get back on
track in April," said Kelley Blue Book analyst Tim Fleming.
"Increased fleet sales and rising incentive spending among auto
makers remain the factors to watch, but retail demand appears to be
holding steady, signaling the industry's strong run isn't over
quite yet."
Car makers benefited from an extra selling day in April, as well
as the Easter holiday falling in March, giving them five full
weekends of sales. Typically, new-car sales start to pick up in the
spring when there is better weather and longer days.
Nissan Motor Co. reported a 13% gain in sales to 123,861
vehicles for an April record, as sales of crossovers, trucks and
SUVs rose 10% -- also to an April record.
With gas prices hovering at about $2 a gallon, customers
continued to snap up pricier trucks and sport-utility vehicles with
sales of those models expected to climb 7% in April, according to
WardsAuto. Passenger-car sales, meanwhile, are forecast to fall 6%
as more shoppers gravitate to roomier vehicles.
For the month, the average transaction price rose an estimated
1.9% to $33,865 for a light vehicle in the U.S., with Detroit auto
makers posting particularly strong numbers, according to Kelley
Blue Book.
Write to Anne Steele at Anne.Steele@wsj.com
(END) Dow Jones Newswires
May 03, 2016 10:05 ET (14:05 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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