Despite a Cooler Economy, Carmakers Warmed Up in July
GM was first out of the gate, reporting its total sales rose 5.4% in July. Excluding its orphaned brands, the Detroit automaker said overall sales rose 24.6% above last year's levels at its remaining Buick, Cadillac, Chevrolet and GMC divisions. On a percentage basis, Buick and Cadillac reported the best gains for the month, rising 137% and 142%, respectively, compared to July 2009. Chevrolet sales rose 12%, and GMC picked up 27.2%.
"Our July results again reflect that each of our brands has contributed significantly to our gains," said GM's new vice president of U.S. sales, Don Johnson. On a conference call with investors and media, Johnson said GM continued to make progress despite a slowdown in the economic recovery. Despite talk of a double-dip recession, he said, "from our standpoint we actually see a low risk of that," barring a strong economic shock, such as a spike in oil prices.
A Party for the Fiesta
At Dearborn, Mich.-based Ford, a pickup in demand for trucks helped offset slower sales of cars and sport-utility vehicles. In total, Ford sold 170,411 vehicles for the month, up 3.1% compared to last year. As a group, van and pickup truck sales rose 27.4%, while car sales slipped 5.6%, and those of SUVs fell 8.4%. Sales at Volvo, which Ford agreed to sell to China's Zhejiang Geely Holding Group in March, fell 33%. The companies completed the sale agreement on Aug. 2. Excluding Volvo, Ford said July sales rose 4.6% compared to July 2009.
In its second month in the U.S. market, the new Ford Fiesta subcompact sold more than 3,300 copies last month, Ford said. Some of those sales, however, may have come at the expense of the slightly larger Focus, which saw year-over-year sales tumble nearly 30%. Sales at Ford's doomed Mercury division slipped 33%. Ford is discontinuing the brand later this year to devote greater resources to its luxury Lincoln and namesake Ford brands. Overall sales at Lincoln last month fell 16.3%, but retail sales rose 7%, Ford said.
Chrysler reported its sales gained 5% in part due to higher sales of its Jeep Grand Cherokee, a new version of which hit dealer lots last month. Demand for the midsize SUV rose 54% compared to July a year ago, the company said. In a statement, U.S. sales executive Fred Diaz, who also heads Chrysler's Ram truck brand, said Chrysler anticipates that the introduction of additional 2011 models will bolster sales in future months. The Auburn Hills, Mich., automaker is on track to overhaul the remaining 75% of its model lineup, it said.
The Ghost of "Cash for Clunkers"
Things weren't nearly as rosy at recall-weary Toyota, which reported an overall decline of 6.8% last month, compared to last year. Overall sales reached 169,224, putting the world's largest automaker in third place for the month in the U.S. market.
Toyota reported sales at its namesake Toyota division fell 7.2% to 150,629 vehicles. Those at its Lexus luxury-car unit were down 3.3%, held up largely due to strong demand for the newly redesigned GX 460 luxury SUV, which nearly doubled. The GX 460 was the subject of safety recall in April for fixes to its electronic stability control system.
Toyota's inability to keep pace with last year's sales, which were some of the worst on record, was affected in part by a surge in demand last year amid the federal "cash-for-clunkers" program, which began in the final days of July 2009. Toyota was one of the largest beneficiaries of that incentive, which offered rebates of up to $4,500 to consumers who traded-in gas-guzzling vehicles for more efficient ones.
Models such as the gas-sipping Toyota Corolla compact sedan were among the most popular bought under the cash-for-clunkers program. Against that backdrop, Corolla sales had a hard time keeping pace last month, tallying 11% fewer sales, although Toyota still managed to sell more than 27,000 units. Sales of Camry, perennially one of the most popular vehicles in the U.S., actually rose 3%. The popular sedan was among the models recalled for problems related to unintended acceleration, which has become the source of federal scrutiny into Toyota's actions to remedy the problem.
A Tumble for Honda's Top Models
Mercedes-Benz reported U.S. sales of its cars and vans rose 11.2% last month from July of last year, selling 18,048 vehicles, up from 16,228 in July of 2009. Fellow German luxury make Porsche reported that sales jumped 75% in the U.S. market. Porsche sold 2,703 vehicles in July, up from 1,544 a year ago, making July the best single-month sales for the sports-car company in two years.