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JUNE SALES EXPECTED TO SHIFT
According to Ward's Auto, light-vehicle sales for the month of June are expected to fall 1.2%, averaging 57,537 units on each of 27 days. This is compared to 56,839 units during 26 days in June of 2006. The Ward's Auto article states that on a volume basis, sales should hit 1,534,650 units, a 38,687-unit increase over last year's 1,495,963, due to buyers seeking out model-year clearance bargains.
In May, car and truck sales were reasonably balanced. But Ward's Auto is predicting that passenger cars will yield ground to light trucks this month, despite high gas prices. In fact, Ward's Auto is forecasting trucks will account for 52.5% of North American light-vehicle sales, up from 50.4% in May. General Motors is expected to deliver 427,917 vehicles this month, representing a 1.1% increase over last year. The increase in sales will be driven by sales of the Chevy Silverado and GMC Sierra pickups. Ford Motor Co. is expected to finish the month above Toyota Motor Sales U.S.A. Inc. due to successful sales of the Escape and Edge, with 244,453 units versus Toyota's 240,258 units.
Sales for the Chrysler Group are expected to remain fairly stable with a small DSR drop of 0.5% on a volume of 213,593 vehicles, compared to 206,758 for June 2006. American Honda Motor Co. Inc. is expected to sell 126,449 vehicles, a drop of 2.2% from last year. Nissan North America Inc. has forecast 78,295 units for June, a 0.3% DSR increase over last June. The article also notes that the rest of the industry is expected to remain flat, as the Detroit Three's market share climbs to 57.7% from May's 53.3% but remains shy of last June's 58.7%.
The increase in overall light-vehicle sales represents a strong seasonally-adjusted annual rate of 16.44 million, up from both last month's 16.07 million and June 2006's 16.12 million. Inventories for light vehicles should rise slightly as the automakers prepare for plant shutdowns this summer as a result of model changeovers. Ward's Auto states that light-vehicle inventory for June should rise to 3,996,000 units, a 19.8% increase from May. Inventory will support a 70-day supply.
Source: Elnick, Diane. (June 8, 2007). "June Sales to Shift Toward Light Trucks." WardsAuto.com. Retrieved June 12, 2007.