Sedan sales are way off, but cuts to fleet sales are also to blame.

The numbers are rolling in for July auto sales in the United States, and it’s not looking good for automakers. Analysts were expecting to see another decline – the seventh consecutive month of falling numbers overall – but the preliminary figures are trending on the steep side, especially for the folks from Detroit. How steep you ask? Going by the numbers, Ford logged a 7.6 percent drop from last July, while Fiat Chrysler Automobiles hit double digits with a 10 percent skid. Still, both are pale in comparison to the 15 percent nosedive felt at General Motors. Even Volkswagen, which continues to feel the burn of dieselgate, fared considerably better with only a 5.8 percent drop. Still, could be worse.

Hyundai logged a 28 percent gut punch compared to July 2016, which was the manufacturer's best-ever sales month. On the flip side from South Korea, Kia only registered a drop of approximately 1 percent. It should be noted that Hyundai reported a large cut to fleet sales, which the manufacturer says plays a significant role in the decline.

 

More 2017 sales news:

 

U.S. automakers (and Hyundai) are definitely taking it on the chin compared to Japanese rivals, though declines are still the general order of the day. Nissan North America dropped approximately 3 percent, as did Mazda. Honda only fell off the pace by a single percent, while Toyota is part of the exclusive club of manufacturers to actually post a gain, and it was an impressive 4 percent to boot. Meanwhile, the folks at Subaru must have some kind of magic beans, because the automaker posted its best-ever July with a 7 percent sales jump.

 

 

As for European automakers, we mentioned Volkswagen’s drop but Audi joins Toyota and Subaru in the black with a 2.5 percent gain compared to July 2016. BMW didn't fare nearly as well, posting whopping 14.8 percent decline. We’re still waiting to hear from Mercedes-Benz and Jaguar.

When all is said and done, average sales across all manufacturers are estimated to be down between 5 and 6 percent as compared to July 2016, though Detroit automakers are averaging well below that mark at 10 percent.

As is always the case, however, there’s more to these numbers than meets the eye.

Digging a bit deeper, we see domestic cars sales are generally down – in some cases way down – compared to trucks, sport-utility, and crossovers. For example, over sales at FCA were down but Ram truck sales broke even. Chrysler enjoyed a 5 percent increase in Pacifica sales, while the 300 sedan saw a surprising 31 percent gain. At Ford, SUV sales climbed slightly, and though overall truck sales were down 7 percent, it’s due to Transit and Transit Connect sales which are included in the segment. F-Series pickups posted a gain of nearly 6 percent, but it wasn’t nearly enough to offset the 20 percent drop in auto sales, led by a whopping 42 percent drop in Ford Fusion sales.

 

 

Detroit automakers also reported a significant cut to fleet sales in July similar to Hyundai, which certainly has a negative impact on sales figures. Lease deals – which according to The Wall Street Journal have accounted for 31 percent of retail sales so far through 2017 – also aren’t quite as lucrative as they’ve been in the past.

Does all this point to impending doom for the auto industry? While the numbers don’t look very good, many analysts and experts aren’t particularly concerned. For starters, manufacturers are still profitable despite the declining sales, and let’s not forget that 2016 was a record sales year capping a consistent years-long increase in auto sales. The trend was bound to slow at some point, and there were many predictions that 2017 would be the year it happened so this isn’t entirely unexpected.

The question people are asking now is whether sales will stabilize to a new normal, or continue dropping. 

Source: Automotive News, The Wall Street Journal

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Audi of America reports July sales increase as new A5 Sportback and Q7 lead consumer demand

  • Q7 sales rose 44 percent for best–ever month for model
  • Sales of A5 more than tripled; Demand for A4 sedan increased 1.5 percent
  • Audi SUV sales increased 4.1 percent for the month


HERNDON, Virginia, August 1, 2017 – Audi of America reported a July sales increase of 2.5 percent to 18,824 vehicles, led by the Q7, the Q3 and the new A5 Sportback.

July was the 79th straight month of record sales for Audi of America. The previous July record was set last year with 18,364 deliveries. Through July, Audi has sold 121,795 vehicles in the U.S., outpacing the premium market.

Audi SUV sales were 9,338, led by 3,334 deliveries of the Q7, the model’s best month ever. The Q7 has now risen 18 percent this year through July. Sales of the Q3 rose 3.8 percent to 1,888. Through the first half of the year, Audi SUV sales have risen 4.1 percent. Deliveries of the new Q5 are down because of inventory constraints. For the year, Q5 sales have risen 11 percent to 29,863.

The new A5, including the coupe, Sportback and Cabriolet, more than tripled to 2,255 vehicles, led by the Sportback, with 1,164 deliveries. The A4 sedan posted sales of 2,652, a 1.5 percent increase for the month and 14 percent year-to-date, as Audi sedans continue to outperform a challenging market for sedans.

“Audi is showing that you can win in a challenging segment with design and technology, based on the positive customer response,” said Cian O’Brien, chief operating officer, Audi of America.

AUDI US SNAPSHOT

--MTD--

--YTD--

Model Line

July '17 Actual

July '16 Actual

Yr/Yr % change

July '17 YTD  Actual

July '16 YTD Actual

Yr/Yr % change

A3

2,300

3,038

-24%

14,837

19,622

-24%

A3 e-tron

218

349

-38%

2,338

2,291

2.1%

A4

2,652

2,612

1.5%

19,921

17,531

14%

A5

2,255

744

203%

8,994

5,078

77%

A6

1,218

1,822

-33%

9,187

10,150

-9.5%

A7

266

417

-36%

2,556

3,473

-26%

A8

270

327

-17%

1,871

2,268

-18%

allroad

271

131

107%

1,654

968

71%

Q3

1,888

1,819

3.8%

10,974

10,287

6.7%

Q5

4,116

4,833

-15%

29,863

26,819

11%

Q7

3,334

2,322

44%

20,066

17,063

18%

R8

73

88

-17%

554

350

58%

TT

181

211

-14%

1,318

1,689

-22%

Total Audi Sales

18,824

18,364

2.5%

121,795

115,298

5.6%

Total CPO Sales

4,594

4,066

13%

26,831

27,130

-1.1%

 

Ford Motor Company Overall Sales Down 7.5 Percent in July, Driven Largely by Lower Fleet Sales -- Down 26.4 percent; Retail Sales Decline 1.0 percent

 

 Ford Motor Company’s U.S. sales were down 7.5 percent in July, with sales of 200,212 vehicles, primarily driven by reduced fleet sales

 Fleet sales of 40,720 vehicles down 26.4 percent, due to decline in Rental and Commercial sales. Half the decline comes from lower Transit sales, tied to recall delivery hold; new Transits available for sale

 July retail results totaled 159,492 vehicles – down 1.0 percent compared to last year; retail share up during the last three month period, including July

 Ford maintains optimal inventory levels versus the industry, with days’ supply even versus year-ago and June  F-Series sales grew 5.8 percent, with 69,467 trucks sold. Demand for high-series Super Duty and F-150 Raptor drove overall F-Series average transaction pricing to a $2,500 gain versus 2016 – $45,000 per vehicle*

 Ford brand SUV sales of 65,558 vehicles were up 2.9 percent – providing a year-to-date record sales of 472,022, positioning the lineup well for the upcoming launches of Expedition and EcoSport

 Explorer sales of 18,763 vehicles increased 12.9 percent versus year ago  Escape gained 5.5 percent on sales of 27,716 vehicles; approximately 30 percent of retail sales were high-series Titanium models  Edge sales totaled 11,156 SUVs – a July record and a 6.1 percent gain

 

HYUNDAI MOTOR AMERICA REPORTS JULY SALES AND BEST TUCSON MONTH OF ALL TIME

  • Tucson Has its Best Month Ever
    • Up 46 Percent Year-Over-Year
    • Surpasses 11,000 Units in a Month for the First Time
  • Best July CUV Sales
  • Hyundai Fleet Mix Under 10 Percent
  • Genesis G80 Up 5 Percent Compared with Last Month

FOUNTAIN VALLEY, Calif., Aug. 1, 2017 Hyundai Motor America today reported July sales of Hyundai and Genesis branded vehicles of 54,063 units, a 28 percent decline compared with the company’s best July ever in 2016. The decrease is largely attributed to a continued reduction of fleet sales that were under 10 percent for the month.

SALES BY BRAND

 

July-17

July-16

2017 YTD

2016 YTD

Hyundai

52,419

75,003

388,860

449,063

Genesis

1,644

0

11,563

0

TOTAL

54,063

75,003

400,423

449,063


HYUNDAI BRAND HIGHLIGHTS
“While July proved to be tough for the entire industry, the Hyundai Tucson achieved another record-breaking month and our CUV sales were the second best in Hyundai history,” said Sam Brnovich, executive director, National Sales, Hyundai Motor America. “We continue to substantially decrease our fleet sales and when the 2016 comparable is an all-time best month, it leads to an overall decrease. We have a positive outlook for the remainder of the year as our brand metrics such as consideration, opinion and dealer leads are strong. With the 2018 Sonata being well-received and the success of our CUVs, we are working hard with our dealers to increase retail sales for the year.”

HYUNDAI MODELS

Vehicle

July-17

July-16

2017 YTD

2016 YTD

Accent

2,115

7,046

34,630

46,376

Azera

233

385

2,025

2,958

Elantra

13,287

20,629

113,539

116,935

Equus

0

119

19

1,154

Genesis

47

2,117

1,003

19,501

Santa Fe

12,749

14,336

72,761

71,772

Sonata

10,648

20,635

86,963

125,044

Tucson

11,257

7,728

62,964

50,392

Veloster

831

2,008

8,823

14,931

Ioniq

1,252

0

6,133

0


GENESIS BRAND HIGHLIGHTS
“Genesis G80 and the G80 Sport performed well in July, up 5 percent compared with June, and G90 received significant recognition from two of the industry’s most reputable third parties,” said Erwin Raphael, general manager of Genesis in the U.S. market. “Consumer response to the brand and our vehicles is a great indication that we are delivering on our promise of a new luxury experience that is truly resonating with customer’s expectations.”
The Genesis G90 was recognized by two industry-leading third parties during the month -- Strategic Vision named the flagship as the highest quality vehicle in the luxury car segment, while J.D. Power rated it as the most appealing vehicle in the Large Premium Car segment in its U.S. Automotive, Performance, Execution and Layout (APEAL) study. Also in the APEAL study, the Genesis brand placed second among premium vehicles.

GENESIS MODELS

Vehicle

July-17

July-16

2017 YTD

2016 YTD

G80

1,339

0

9,005

0

G90

305

0

2,558

0

 

KIA MOTORS AMERICA ANNOUNCES JULY SALES

Highest Monthly Sales Total in Company History for Forte Family of Compact Cars

IRVINE, Calif., August 1, 2017 – Kia Motors America (KMA) today announced July sales of 56,403 vehicles, led by the Forte family of compact cars with a best-ever total of 12,022 units sold, breaking the nameplate’s previous monthly sales record set in May of this year.

About Kia Motors America

Headquartered in Irvine, California, Kia Motors America continues to top quality surveys and is recognized as one of the 100 Best Global Brands and 50 Best Global Green Brands by Interbrand.   Kia serves as the "Official Automotive Partner" of the NBA and LPGA and offers a complete range of vehicles sold through a network of nearly 800 dealers in the U.S., including cars and SUVs proudly built in West Point, Georgia.*

For media information, including photography, visit www.kiamedia.com.  To receive custom email notifications for press releases the moment they are published, subscribe at www.kiamedia.com/us/en/newsalert.



 

 

MONTH OF JULY

YEAR-TO-DATE

Model

2017

2016

2017

2016

Rio

1,587

3,331

8,272

18,699

Forte

12,022

10,303

70,768

63,045

Optima

7,933

9,780

67,650

70,847

Cadenza

523

335

3,178

3,091

K900

35

61

286

500

Niro

2,763

N/A

15,439

N/A

Sportage

7,135

8,111

43,741

50,340

Sorento

9,734

9,854

59,990

68,932

Sedona

1,710

5,037

16,738

29,157

Soul

12,961

13,157

66,077

83,685

Total

56,403

59,969

352,139

388,296

 

 

SUBARU OF AMERICA, INC. REPORTS JULY 2017 AS BEST JULY EVER.
 

Record July - monthly sales increase 7 percent over July 2016

  • 68 consecutive months of yearly month-over-month growth
  • Best July ever for Impreza and Outback
  • 41 consecutive months of more than 10,000 Outbacks sold
  • 48 consecutive months of more than 10,000 Foresters sold
Cherry Hill, N.J. -  Subaru of America, Inc. today reported 55,703 vehicle sales for July 2017, a 7 percent increase over July 2016, and the best July in the history of the company. The automaker also reported year-to-date sales of 360,513 vehicles, a 8.7 percent gain over the same period in 2016.

July marked the 41st consecutive month of 40,000+ vehicle sales for the company. Impreza and Outback sales were notably strong as each model achieved its best July ever. Forester sales for July 2017 increased 2.9 percent over the same month in 2016. BRZ also enjoyed strong gains over July 2016.

In July, the Impreza was recognized as one of Kelley Blue Book’s 10 Most Awarded Cars of 2017. So far this year, Kelley Blue Book has named the Impreza Best Resale Value in its Class, one of the 10 Best Sedans Under $25,000, and one of the 10 Coolest Cars Under $18,000. Subaru was also recognized as one of Kelley Blue Book’s Most Awarded Brands of 2017.

“Given the extremely competitive market situation, we are pleased our sales growth continues to eclipse the previous July sales record set just last year,” said Thomas J. Doll, President and Chief Operating Officer, Subaru of America, Inc. “These record July and YTD results could not have been achieved without the sterling effort of our retailers, supported likewise by the dedicated efforts of our colleagues at Subaru of America, our distributor partners, as well as Subaru Corporation.”

“With several 2018 models – including the all-new Crosstrek and refreshed Legacy, Outback, WRX and STI – now arriving at retailer show rooms, we expect excellent results over the final five months of the year to set our ninth consecutive sales record,” said Jeff Walters, senior vice president of sales, Subaru of America, Inc.

Carline

Jul-17

Jul-16

% Chg

Jul-17

Jul-16

% Chg

MTD

MTD

MTD

YTD

YTD

YTD

Forester

15,283

14,856

2.9%

103,240

95,111

8.6%

Impreza

7,777

5,200

49.6%

50,803

34,965

45.3%

WRX/STI

2,933

3,288

-10.8%

19,118

19,294

-0.9%

Legacy

3,785

5,212

-27.4%

29,349

35,569

-17.5%

Outback

17,581

14,704

19.6%

103,834

92,090

12.8%

BRZ

372

353

5.4%

2,669

2,760

-3.3%

Crosstrek

7,972

8,480

-6.0%

51,500

51,762

-0.5%

TOTAL

55,703

52,093

6.9%

360,513

331,551

8.7%

 

 

FCA US Reports July 2017 Sales

  • Jeep® Compass, Chrysler Pacifica and Ram ProMaster City each post their best July sales ever
  • Jeep Grand Cherokee records best July sales since 2005
  • Chrysler 300 logs double-digit percentage increase in July
August 1, 2017 , Auburn Hills, Mich. - FCA US LLC today reported sales of 161,477 units, a 10 percent decrease compared with sales in July 2016 (180,389 units).

In July, retail sales of 145,391 units were down 6 percent compared with the same month in 2016 and represented 90 percent of total sales. In line with FCA’s strategy to reduce sales to the daily rental segment, fleet sales of 16,086 units were down, as expected, 35 percent year over year. The largest planned volume reduction in July fleet sales came from the Jeep® brand, which reduced its fleet sales number by 82 percent year over year. Fleet sales represented 10 percent of total July sales.

Three FCA US vehicles – the Jeep Compass, Chrysler Pacifica minivan and Ram ProMaster City – each posted their best July sales ever. The Jeep Grand Cherokee turned in its best July sales since 2005. Chrysler 300 sedan sales were up 31 percent in July, the largest year-over-year percentage increase of any FCA US vehicle in the month. Dodge Charger sales were up 9 percent in July as well, compared with the same month a year ago.

Jeep® Brand
Three Jeep models posted year-over-year increases in July. The Jeep Compass turned in its best July sales ever, while the Jeep Wrangler – the most capable and recognizable vehicle in the world – recorded a slight year-over-year increase in the month. Sales of the Jeep Grand Cherokee – the most-awarded SUV ever – were up 14 percent for its best July sales since 2005. The Wrangler was named best-in-class Entry SUV in Strategic Vision’s annual Total Quality Impact™ (TQI) report in July.

Ram Truck Brand
Ram Truck brand sales were up slightly year over year for its best July sales since 2005. In addition, the brand’s retail sales were up 7 percent in July, compared with the same month a year ago. The Ram ProMaster City van posted its best July sales ever. Ram Truck was the industry’s most improved truck brand in the recent J.D. Power 2017 U.S. Initial Quality Study™ (IQS). Ram Truck improved by nearly 25 percent its initial quality score from last year’s study.

Dodge Brand
Four Dodge brand vehicles – the Dodge Charger, Dodge Journey, Dodge Durango and Dodge Viper – each posted year-over-year sales increases in July, compared with the same month a year ago. Charger sales were up 9 percent year over year, while the Durango turned in its best July sales since 2011. For the fifth time in seven years, the Dodge Challenger ranked highest among all vehicles in the Midsize Sporty Car segment in J.D. Power’s 2017 U.S. Automotive Performance, Execution and Layout (APEAL) Study™.

Chrysler Brand
Sales of the all-new Chrysler Pacifica minivan and Chrysler 300 full-size sedan were up year-over-year in July. Sales of the Pacifica – the most-awarded minivan of 2016 and 2017 – increased 5 percent for its best July sales ever. Sales of the 300 increased 31 percent, the largest percentage increase of any FCA US model in July. The Pacifica continues to accumulate awards and accolades in 2017, ranking highest among minivans in its inaugural year in J.D. Power’s 2017 APEAL study. The study measures how gratifying a new vehicle is to own and drive, based on customer evaluations of 77 vehicle attributes of new 2017 model year vehicles. The Chrysler brand was the industry’s most-improved brand in the APEAL study.

FIAT Brand
Sales of the Fiat 500 and Fiat 500X were up in July, compared with the previous month of June. The all-new 2017 Fiat 124 Spider Abarth took the top award in the Small Convertible category at the seventh annual Topless in Miami Presented by Haartz competitive car event hosted by the Southern Automotive Media Association (SAMA).

Alfa Romeo Brand
Alfa Romeo brand sales of 1,225 units were up significantly compared with the same month a year ago.

Method of Determining FCA US LLC’s Monthly Sales. FCA US’s reported vehicle sales represent unit sales of vehicles to retail customers, deliveries of vehicles to fleet customers and to others such as FCA US’s employees and retirees as well as vehicles used for marketing.  Most of these reported sales reflect retail sales made by dealers out of their own inventory of vehicles previously purchased by them from FCA US.  Reported vehicle units sales do not correspond to FCA US’s reported revenues, which are based on FCA US’s sale and delivery of vehicles, and typically recognized upon shipment to the dealer or end customer. As announced on July 26, 2016, FCA US has modified its methodology for monthly sales reporting as follows:
  • Sales to retail customers by dealers in the U.S. are derived from the New Vehicle Delivery Report (“NVDR”) system and are determined as the sum of (A) all sales recorded by dealers during the month net of all unwound transactions recorded to the end of that month (whether the original sale was recorded in the current month or any prior month); plus (B) all sales of vehicles during that month attributable to past unwinds that had previously been reversed in determining monthly sales (in the current or prior months).
  • Fleet sales are recorded upon the shipment of the vehicle by FCA US to the customer or end user.
  • Other retail sales are recorded either (A) when the sale is recorded in the NVDR system (for sales by dealers in Puerto Rico and limited sales made through distributors that submit NVDRs in the same manner as for sales by U.S. dealers) or (B) upon receipt of a similar delivery notification (for vehicles for which NVDRs are not entered such as vehicles for FCA employees). 

BMW Group U.S. Reports July 2017 Sales

  • BMW brand sales decrease 14.8 percent
  • MINI brand sales decrease 7.9 percent
Woodcliff Lake, NJ - August 1, 2017... Sales of BMW brand vehicles decreased 14.8 percent in July for a total of 21,965 compared to 25,777 vehicles sold in July 2016. Year-to-date, the BMW brand is down 4.6 percent in the U.S. on sales of 171,051 vehicles compared to 179,213 sold in the first seven months of 2016.

Notable vehicle sales in July include the BMW 4 Series which increased 31.1 percent to 2,866 cars, the BMW 5 Series which increased 12.4 percent to 3,713 vehicles, and the BMW X5 which increased 8.8 percent to 2,986 vehicles.

“Sedans made something of a comeback in July even as the dog days and summer vacations had their effect on the pace of business,” said Bernhard Kuhnt, President and CEO, BMW of North America. “The new BMW 5 Series continues gaining as availability improves. The highly popular BMW X3 is now undergoing model changeover and we are looking forward to the market launch of the all-new model later this year.”

BMW Group Sales
In total, the BMW Group in the U.S. (BMW and MINI combined) reported July sales of 26,363 vehicles, a decrease of 13.7 percent from the 30,551 vehicles sold in the same month a year ago. Year-to-date, BMW Group sales are down 5.5 percent on sales of 197,654 vehicles in the first seven months of 2017 compared to 209,131 in the same period in 2016.

MINI Brand Sales
For July, MINI USA reported 4,398 automobiles sold, a decrease of 7.9 percent from the 4,774 sold in the same month a year ago. Year-to-date, MINI USA reported a total of 26,603 automobiles sold, a decrease of 11.1 percent from 29,918 automobiles sold in the first seven months of 2016.

 

Table 1: New Vehicle Sales BMW of North America, LLC, July 2017

 

July

2017

July

 2016

%

YTD July 2017

YTD July

 2016

%

BMW brand
 

21,965

25,777

-14.8

171,051

179,213

-4.6

BMW passenger cars

15,624

19,621

-20.4

110,802

124,875

-11.3

BMW light trucks

 

6,341

6,156

3.0

 

60,249

54,338

10.9

 

MINI brand
 

4,398

4,774

-7.9

 

26,603

29,918

-11.1

 

TOTAL Group
 

26,363

30,551

-13.7

 

197,654

209,131

-5.5

 

 

BMW Pre-Owned Vehicles
  • In July, BMW Certified Pre-Owned sold 11,857 vehicles, a decrease of 0.2 percent from July 2016.
  • Total BMW Pre-Owned sold 20,956 vehicles, a decrease of 7.8 percent from July 2016.
  • Total BMW Pre-Owned cars sold year-to-date were 140,607, a 15.7 percent increase from the first seven months of 2016.

MINI Pre-Owned Vehicles
  • In July, MINI Certified Pre-Owned sold 1,015 vehicles, a decrease of 15.2 percent from July 2016.
  • Total MINI Pre-Owned sold 2,656 vehicles in July 2017, an increase of 1.0 percent from July 2016.
  • Total MINI Pre-Owned sales year-to-date were 18,308, a 12.4 percent increase from the first seven months of 2016.