JUNE AUTO SALES
Ford sees good news in June decline
Automaker cuts fleet sales; Focus, Edge moving up
Richard Truett
Automotive News
July 3, 2007 - 1:08 pm
UPDATED: 7/3/07 4:38 p.m.
DETROIT -- Ford Motor Co.’s June sales were down 8.2 percent from last year, but the company said it saw some good news in those numbers.
The decline comes mostly from Ford's planned reduction of sales to daily rental car fleets.
Collectively, automakers sold 1,455,503 vehicles in the United States in June, down 3.0 percent from the same month last year. The seasonally adjusted annualized rate for June was 15.9 million.
Ford has said it wants to cut sales to rental fleets by 135,000 units this year. In June, it said, it achieved 22,000 units of that cut. Ford said that through the first six months of this year it has cut sales to rental fleets by 89,000 units.
Sales for all of Ford's brands, including Jaguar, Land Rover and Volvo, totaled 245,924, down from 267,955 a year ago.
Ford said it eked out its first monthly gain in showroom sales since October. The automaker said essentially all of the decline in its sales reflected its strategy of throttling back on fleet sales and emerging as a smaller automaker focused on higher-margin showroom transactions. Ford and General Motors are reducing low-margin sales to car rental agencies because of their low return and potential for eroding resale values.
A number of new and redesigned Ford vehicles posted strong sales in June:
The Edge crossover posted record sales of 12,470
The redesigned Escape, up 33 percent compared with June 2006, and the Mercury Mariner, up 97 percent, set June sales records.
The redesigned Taurus — actually a renamed Five Hundred sedan — sold 5,836 units in its second month on the market.
Despite higher fuel prices, the Expedition also posted an increase with 8,972 units sold, up 30.9 percent over last June. Lincoln logged its ninth straight month of sales increases, and a 30.0 percent increase over last June.
The Focus gained 20 percent compared with June 2006.
But the Mustang pulled up lame. With sales of 12,781, it was down 15.7 percent from a year ago.
The Fusion and its Mercury sibling, the Milan, also declined in June. The Fusion was off 9.2 percent compared with June 2006, and the Milan was down 13.5 percent. The key F-series truck, Ford's volume leader, lost 0.5 percent with sales of 65,156 units in June.
Sales for the Chrysler group were down 1 percent compared with June 2006 in one of its last months in operation as a unit of DaimlerChrysler. Chrysler is being taken private by Cerberus Capital Management in a $7.4 billion deal that could close this month.
Ford and Chrysler stepped up their marketing and incentive spending in June.
Chrysler ran an ad campaign through June spotlighting the fuel efficiency of its passenger cars and small SUVs, and offered an industry-leading package of sales incentives.
Chrysler said its car sales were up 55 percent in June, while sales of the new Jeep Wrangler helped lead results higher for that brand by 19 percent.
In other results:
Honda posted higher sales, mostly on the strength of new vehicles, while nearly all of its older models struggled. For the month, sales for Honda and Acura totaled 140,935, up 11.5 percent over a year ago. But that spike came from just a few vehicles.
Accord sales were down 11.3 percent from June 2006, to 28,915. Ridgeline, Pilot and Element also declined.
But sales of the recently redesigned Civic shot up 38.8 percent, to 36,512. Honda’s other winners were the redesigned CR-V, up 59.1 percent to 19,715 sales for June, and the fuel-saving Fit, up 49.8 percent over a year ago.
Toyota said U.S. sales rose 6.1 percent in June as incentives helped boost sales of its Tundra pickup. The Japanese automaker, which has overtaken General Motors as the world's largest, sold 245,739 vehicles in the United States in June.
The automaker said car sales rose 5 percent, driven by big increases in sales of its Camry sedan and the Prius hybrid vehicle. Truck sales rose 7.8 percent, boosted by a big increase in sales of the Tundra pickup, on which Toyota has uncharacteristically heaped big incentives. The results include both Toyota and Lexus brands.
Nissan said U.S. sales rose 22.7 percent, as strong demand for its cars offset a big decline in trucks. Nissan said it sold 92,212 vehicles in the United States in June.
U.S. sales of Nissan cars rose 56.5 percent, driven by the Versa, while truck sales fell 15 percent, the automaker said.
The automaker said its Infiniti unit's U.S. sales rose 9.3 percent compared with June 2006.
Nissan's gains came after it stepped up its incentive spending in June, offering an average discount of $2,218, compared with $1,943 in May, according to Edmunds.com.
Korean automakers had a mixed month with Hyundai up and Kia down.
Hyundai sales broke out of their funk in June, moving ahead 10.9 percent on the strength of the Elantra, Sonata, Entourage, Sante Fe and Veracruz. Hyundai sold 49,368 units in June, up from 44,508 a year ago. But total Hyundai sales are just 1.1 percent ahead of the first six months of 2006.
Hyundai’s sister company, Kia, slipped 5.1 percent in June to 26,288 from 27,443 a year ago. For the year, Kia sales are 5.3 percent higher.
Volkswagen brand car sales in the United States rose 15.0 percent in June to 23,137 units, marking its best overall sales month since August last year.
The sales helped reduce the overall drop in U.S. sales this year to just 1 percent through June, amounting to a total of 114,880 VW brand cars. VW said the increase was driven by strong sales of the GTI, Rabbit, Jetta and Passat.
Also, said VW, "The retractable hardtop convertible Eos posted its second-best month ever, as summer is now in full swing."
Volkswagen's premium brand Audi suffered a 3.1 percent drop in U.S. vehicle sales to 7,789 units, mainly due to a sharp decline in demand for its A6 full-sized model. Sales of its revamped TT sports coupe and roadster model line increased by almost fivefold to nearly 500 units. In the first six months of 2007, Audi sales have risen 13.0 percent to 45,711 units.
BMW, the world's largest premium carmaker, posted a 6.0 percent growth in U.S. vehicle sales to 29,428 units in June as demand for its BMW brand SUVs and its Mini surged, the automaker said. In the first six months of 2007, group sales rose 4.5 percent to 164,542 units.
DaimlerChrysler reported that its Mercedes-Benz unit fell 6 percent compared with June 2006, to 19,589 vehicles.
Subaru posted U.S. sales of 17,108, down 7.4 percent from June of 2006.
Mitsubishi posted U.S. sales of 13,014, up 30.1 percent from June of 2006.
Porsche sales grew by 13.8 percent last month to 3,267 units. Porsche said sales of its facelifted Cayenne SUV rose 57 percent, while demand for its flagship 911 coupe grew 7 percent.
Reuters contributed to this report
You may e-mail Richard Truett at
rtruett@crain.com --------------------------------------------------------------------------------
June June Pct. 6 mos. 6 mos. Pct.
2007 2006 chng. 2007 2006 chng.
BMW* 29,428 27,767 6.0% 164,542 157,438 4.5%
DaimlerChrysler** 202,955 206,771 –1.8% 1,231,447 1,244,616 –1.1%
Ford Motor Co.*** 245,924 267,955 –8.2% 1,371,283 1,543,381 –11.2%
General Motors**** 320,668 407,513 –21.3% 1,897,720 2,036,037 –6.8%
American Honda† 140,935 126,449 11.5% 766,929 741,227 3.5%
Hyundai Group†† 75,656 71,951 5.1% 390,987 380,613 2.7%
Isuzu 676 745 –9.3% 3,777 4,718 –19.9%
Mazda 25,761 23,727 8.6% 152,683 140,704 8.5%
Mitsubishi 13,014 10,004 30.1% 70,357 58,361 20.6%
Nissan††† 92,212 75,154 22.7% 535,372 511,768 4.6%
Porsche 3,267 2,871 13.8% 17,859 18,610 –4.0%
Subaru 17,108 18,476 –7.4% 90,154 96,026 –6.1%
Suzuki 10,325 9,516 8.5% 57,488 56,959 0.9%
Toyota‡ 245,739 223,018 10.2% 1,331,074 1,223,542 8.8%
VW‡‡ 31,226 28,430 9.8% 162,847 158,490 2.7%
Other (estimate) 609 583 4.5% 3,755 3,518 6.7%
TOTAL 1,455,503 1,500,930 –3.0% 8,248,274 8,376,008 –1.5%
Numbers in this table are calculated by Automotive News based on actual monthly sales reported by the manufacturers and may differ from numbers reported elsewhere.
Source: Automotive News Data Center
Note: Other includes estimates for Ferrari, Lamborghini and Lotus
*Includes Mini and Rolls-Royce
**Includes Mercedes-Benz
***Includes Aston Martin, Jaguar, Land Rover and Volvo
****Includes Saab
†Includes Honda Division and Acura
††Includes Hyundai and Kia
†††Includes Nissan Division and Infiniti
‡Includes Toyota Division and Lexus
‡‡Includes VW, Audi and Bentley