US auto sales heat up in April
US auto sales left a lackluster start to the year in the dust in April, posting a strong performance that could signal a record-shattering 2016.
Solid job growth, low gasoline prices and easy credit lured shoppers to showrooms as spring weather got underway, a harbinger of the summer vacation driving season ahead.
Though gasoline prices ticked a bit higher last month, they remain well below the year-ago level, continuing to make fuel-guzzling pickup trucks and sport utility vehicles (SUVs) hot customer picks.
April sales revved up after a modest March performance that had analysts talking about slowing growth for the auto industry after a seven-year boom.
"Market conditions remain positive as the longest expansion in US auto sales in the post-World War II era continues," said Eric Lyman, TrueCar's vice president of industry insights.
"We'll want to see automakers maintain incentive spending discipline throughout the year as the industry approaches a new all-time volume record."
General Motors, the largest US automaker, reported Tuesday sales of 259,557 vehicles, down 3.5 percent from a year ago, due to a retreat in less-profitable fleet sales.
GM is focused on boosting its retail sales, which rose three percent year-over-year in April, due in part to sales of the Chevrolet brand, which had its best April since 2006.
Overall, GM retail sales were up nine percent over the past 12 months, more than double the industry's four percent gain.
"GM's retail growth over the last 12 months has outpaced the industry by a wide margin because our redesigned large pickups and SUVs are hits, we made smart investments in new segments like small crossovers and mid-size pickups, and our momentum in the car business is accelerating with each new model introduction," said Kurt McNeil, US vice president of sales operations.
Ford Motor, the number-two US automaker, reported a total of 231,316 vehicle sales in April, a four percent increase from April 2015.
It was Ford's best April in 10 years. Driving the gain was a 22 percent jump in Explorer SUV sales from a year ago. Ford brand SUVs had record sales for the month.
Sales of the F-series of Ford's F-150 pickup truck climbed 13 percent, their best performance in 11 years.
"We saw strong consumer demand in April, especially for pickups," said Mark LaNeve, Ford vice president for US marketing, sales and service.
- Jeeps, Ram trucks surge -
Italian-owned Fiat Chrysler Automobiles reported sales of 199,631 vehicles, a six percent rise from April 2015 and its best April sales in 11 years.
Jeep brand sales continued their record-breaking streak since November 2013, FCA said. Sales advanced 17 percent to 84,298 vehicles, the best April performance yet.
Ram brand trucks, with their high profit margins, racked up a 12 percent sales gain, their best April since 2005.
Sales of Chrysler brand Town & Country minivans leaped 82 percent from a year ago. On the downside, Fiat brand sales tumbled 19 percent.
According to media reports, FCA and Google plan to develop self-driving prototypes based on the new Pacifica minivan.
Japanese automakers also road the year-over-year sales uptrend. Toyota, the world's top automaker, reported US sales rose 3.8 percent, while Nissan's sales jumped 12.8 percent.
"The industry had its strongest April in more than 10 years, possibly a best-ever month, said Bill Fay, Toyota division group vice president and general manager.
Honda clocked a new April sales record, pushing sales up 14.4 percent.
But Volkswagen, the German company mired in a worldwide scandal over emissions-cheating diesel cars, continued to suffer in the US market, where sales sank 9.6 percent in April.
Overall US sales results have been better than Edmunds.com projections, with the notable exceptions of GM and Volkswagen, whose declines were steeper than expected.
Total industry sales were forecast to log a 4.3 percent year-over-year rise, the best April performance since 2005, according to Edmunds.com.
The industry specialist said that "2016 is on track to shatter last year's full-year record of 17.5 million sales."