Forecasts for US light vehicle sales in April proved to be a bit optimistic as total volumes continued to decline.
Automakers delivered nearly 1.43m cars and light trucks last month, a 4.7% drop from April 2016. Of all the major segments, only utilities posted a gain. The seasonally adjusted annualised rate (SAAR) came in at 16.68m, down more than a half million units from April 2016 and well below expectations of a 17m-plus rate.
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The ‘Detroit Three’ took the biggest hit with combined sales down 6.5% for a loss of nearly a full percentage point of market share.
Ford’s 7.1% deficit was the largest and reflected a 10.5% decline in retail volume. Fleet deliveries were flat compared to last year, accounting for 34.4% of the company’s total unit volume. Ford normally gets a larger percentage of its total sales from government and commercial fleet sales than either FCA or General Motors.
Jeep, again, was the biggest loser brand for FCA. Sales fell 16.5% last month largely due to the rundown of existing Compass and Patriot inventories. The Cherokee posted a 17% loss as FCA reduces its sales to daily rental fleets.
Planned cuts in fleet deliveries were a major factor in FCA’s April deficit. Retail turnover dropped just 3%.
Jeep did manage to retake the top spot among crossover/SUV brands.
Strong sales were reported for the Ram pickup, which outsold the Chevrolet Silverado again. Ram and Alfa Romeo were the only FCA brands in the black but the Chrysler Pacifica enjoyed a good month, becoming the best selling minivan.
General Motors had the smallest deficit among the Detroit companies. Sales fell 5.8% due to a 10.7% decline in Chevrolet brand volume. Buick delivered the beat results among GM brands with a 17% increase.
American Honda came up short as a 12.6% decline in passenger car sales and sales of the Acura brand wiped out a record month for light truck deliveries. Nissan volume was down slightly even though its Infiniti brand remained in the black. Car volume also dragged down Toyota’s results but one high-flying Lexus came in with another down month as it trails Mercedes-Benz and BMW in the premium segment.
Subaru reported yet another record month while Mazda and Mitsubishi sales fell.
Total volume from the Japanese automakers was off by 4% but market share grew slightly.
Hyundai was in the black but Kia was in the red as the Korean manufacturers missed their April 2016 mark.
BMW and Mercedes had slow months but the other European manufacturers beat their year ago paces. Jaguar Land Rover came through with a record April as did Audi. Porsche said it set a new monthly sales record last month and Volvo deliveries jumped 15.4%.
Mini US hopes to turn its brand around. With year to date sales down 12.2% and a 27.4% nosedive in April, the brand has appointed new heads of US sales and marketing.
With a fourth consecutive month of year over year declines, hopes for another record year are dimming. Most prognosticators are still looking at a 17m-plus year but there are a few warning signs. Incentives rose again and leasing is still a large factor in retail deals. Moreover, inventories are growing and dealers are becoming uncomfortable.
This doesn’t mean the market is heading for a crash but a soft landing will depend on proactive management of production, especially in passenger cars. Light trucks, led by crossovers and sport utility vehicles accounted for 62.5% of all sales in April and that share continues to grow.
* indicates a sales record.
**Volkswagen Group figures include Audi, Bentley, Porsche and Volkswagen brands
Other includes estimated sales for Aston-Martin, Ferrari, Lamborghini, Lotus, Rolls-Royce and Tesla
