Strong demand for sport utility vehicles and trucks in June helped General Motors Co. and Ford Motor Co. offset slowing demand for sedans by allowing them to raise prices on their trucks.
Automotive News reported that GM and Ford said today increases in the average transaction prices for their vehicles, particularly trucks and SUVs, outpaced sales volume growth that fell short of Wall Street expectations. Ford, for example, said prices for its F-series trucks rose 8%, or $3,600, while sales volume for the pickup truck line dropped 8.9% in June.
U.S. June auto industry sales will be about 1.5 million vehicles, a rise of 4% from a year ago, Ford said.
GM’s sales fell 3% last month as the company’s small cars slid from year-ago figures, including a 13% drop in Cruze compact sales. Sales of GM’s large SUVs also fell, reflecting fewer sales to fleets, a company spokesman said. But GM said average transaction prices for all vehicles rose almost $1,000 from a year earlier.
The National Automobile Dealers Association (NADA) this week raised its forecast for 2015 U.S. auto sales to 17.2 million vehicles from 16.9 million. It would be the sixth straight year of solid gains since the recession.
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