Strong truck demand drives US auto industry to April rise

02 May, 2015

General Motors Co and Ford Motor Co both reported stronger-than-expected US auto sales in April on Friday as robust demand for trucks, and crossover and sports utility vehicles kept the industry on track for its best year in almost a decade. GM sales rose 6 percent, Ford's were up 5.4 percent and Fiat Chrysler Automobiles gained 5.8 percent. Nissan Motor Co and Toyota Motor Corp increased 5.7 percent and 1.8 percent, respectively. Fiat, Nissan and Toyota all missed expectations.
The sales results were largely in line with estimates for the market as analysts polled by Reuters expected overall industry sales to rise 6 percent. US industry sales slipped to 16.5 million vehicles in 2006 from almost 17 million the prior year, and fell as low as 10.4 million in 2009 amid the recession, before beginning to climb.
Ford officials said industry average transaction prices in April were up $1,000 from last year to $31,200 per vehicle, and dismissed concerns about longer loan rates, with some now reaching 84 months. Auto sales are an early monthly snapshot into consumer demand. GM expects the industry's annual sales rate in April was 16.7 million vehicles, compared with 16.05 million last year.
GM's sales rose to 269,056 vehicles as truck and crossover sales rose 13 percent and 25 percent, respectively. Large SUV sales fell, due more to limited availability because of sustained high demand. Sales of GM's Cadillac Escalade large SUV, one of its most profitable vehicles, rose 144 percent to 3,237. Ford's sales hit 222,498 vehicles as retail sales rose 7 percent. Ford-brand SUVs had their best April ever, with sales up 12.3 percent while retail sales of the new F-Series pickup truck increased 8 percent, and its average sales prices hit an all-time high of $42,600 per vehicle. Nissan sales totaled 109,848 vehicles as demand for Nissan crossovers, trucks and SUVs set an April record, up 23.7 percent.

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