Light Vehicle Sales Fall In The United States As SUVs Boom

In the month of June sales of light vehicles in the United States fell by 3%. The sales of full-size trucks and sports utility vehicles, however, continued to be strong. Japanese brands such as Nissan, Toyota and Honda also registered gains in sales.

With regards to individual U.S. carmakers, total sales of General Motors fell by 4.7% to reach a level of 243,155 units in the month of June. While all four brands of GM recorded sales declines, sales of Buick increased by 16.4%. Chevrolet, which is the highest selling brand for GM in terms of volumes, recorded a sales decline of 6.4% managing to sell 169,842 units. Cadillac and GMC declined by 11.8% and 3.6% respectively.

Economic fundamentals

Sales of General Motors’ sports utility vehicles and crossovers on the other hand rose by 22% in the month of June compared to a similar period a year ago. Despite the decline in the sales of light vehicles, the carmaker is optimistic over the future.

“U.S. total sales are moderating due to an industrywide pull-back in daily rental sales, but key U.S. economic fundamentals clearly remain positive,” said GM’s chief economist, Mustafa Mohatarem, in a statement.

Sales of passenger cars at Ford Motor Company fell by 23% to reach a level of 52,731 units. Sports utility vehicles and trucks did not make up for the decline in light vehicles as sales in this category managed to rise by only 1.2%. Ford sold 97,000 truck units and 77,000 SUV units. Combined sales for the carmaker fell by 5.1% to reach a level of 227,979 units in June.

China market

While there was a decline in sales in the United States, Ford Motor Company managed to increase the number of units sold in China by 15% in the month of June. This was the best sales result that Ford has ever posted in the month of June in China. However, sales of Ford vehicles in the world’s most populous country and the world’s second-biggest economy have declined by 7%. The decline in sales for Ford vehicles in China has been attributed to stiff competition from Chinese automakers who are able to offer more attractive prices.

Another American car manufacturer whose sales also fell in June is Fiat Chrysler Automobiles. Sales of FCA vehicles fell by 7.4% in the United States as the carmaker recorded declines for the tenth month in a row as its iconic Jeep brand struggled in the market. On the bright side FCA’s Ram brand posted an increase of 6.5% in sales.