As Fleet Sales Stall, Automakers Report Mixed Results

Automakers reported mixed results for their July sales in the United States, as both General Motors and Ford posted declines due in part to lower sales to rental fleets and other business customers.

GM, the nation’s largest automaker, said it sold 201,000 vehicles in the month, down 6.4 percent from the same period a year ago. The company said sales to retail customers increased slightly, but fleet sales dropped forty-one percent.

Ford said its overall United States sales declined 3.5 percent during the month to 166,000 vehicles. Ford also cited lower fleet sales as the prime reason for the decrease.

Other automakers were not as affected by cutbacks by commercial customers. Chrysler said its sales in July increased thirteen percent to 126,000 vehicles, as consumers continued to buy hot models like the Jeep Grand Cherokee and Chrysler 300 sedan.

"July was another solid month for Chrysler as we again demonstrated our disciplined and methodical approach to growing sales and profits," said Reid Bigland, Head of United States Sales at Chrysler.

Of the foreign car companies, Volkswagen said its American sales in July rose 27.3 percent from a year earlier. The German carmaker is increasing production at its new plant in Tennessee to keep up with demand.

Analysts have forecast a relatively healthy month for the overall industry. But manufacturers are watching closely for any signs of weakening because of a sluggish economy.

In the first six months of the year, sales increased 14.8 percent from the same period in 2011. Analysts had predicted that July sales would be marginally better than June, and that the industry would remain on track to sell more than fourteen million vehicles for the entire year.

"Signs of a housing recovery and good news on consumer confidence and household income should keep the light vehicle selling rate in the fourteen-million range and drive seasonally higher truck sales as we move toward fall," said Kurt McNeil, Vice President of United States Sales at GM.

GM had a 136-day supply of pickup trucks during the quarter, which is considered more than double the ideal inventory levels.

Ford said that its pickup sales fell nine percent during the month. The company’s best-sellers were small cars and the new Explorer SUV Nearly half of all the pickups that Ford sold were equipped with smaller, more fuel-efficient engines.

"Fuel economy continues to be a top consumer purchase driver across our lineup," said Ken Czubay, Head of Ford’s United States Sales and Marketing.

Other automakers are expected to post increases during the month, particularly Toyota and Honda, which a year ago were suffering product shortages after the earthquake and tsunami in Japan.

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