Major Automakers Report Strong July U.S. Vehicle Sales

(RTTNews) - Major automakers on Friday reported strong U.S. vehicle sales for the month of July, helped by a rebounding economy, rising consumer confidence and widely available credit. General Motors Co. (GM) and Ford Motor Co. (F) reported 9.4% and 9.6% rise in U.S. vehicles sales, respectively, while Chrysler Group LLC and Toyota Motor Corp. (TM) reported 20% and 11.6% growths, respectively.

GM, the largest U.S. automaker, said that its July U.S. sales rose 9.4% to 256,160 vehicles from 234,071 vehicles in the same month last year.

The automaker said this was its best July sales since 2007.

There were 26 selling days for July 2014, compared to 25 for last year.

Retail sales for the month were up 4%. Commercial sales were up 69% and all other fleet sales were up 21%.

Among GM's four brands, Chevrolet sales rose 7.7% to 175,155 units, GMC sales surged 22.2% to 48,081 units and Buick sales increased 7.9% to 17,683 units, while Cardillac sales fell 2.6% to 15,241 units.

"GM and the U.S. economy left July carrying good momentum," said Kurt McNeil, U.S. vice president of Sales Operations. "The economy has bounced back strongly from the harsh winter, consumer confidence has reached a post-recession high, energy prices remain moderate and job growth continues. The stage is set for strong sales through the balance of the year."

GM's strong sales performance continued despite a series of recalls announced by the automaker recently. Of course, the recalls had a telling effect on the company's second quarter profit that plunged 80% from last year, mainly hurt by the hefty recall-related charge.

GM has recalled nearly 30 million vehicles so far this year, due largely to defective ignition switches. The automaker faces multiple probes for its slowness in calling back about small cars with ignition issues linked to at least 13 deaths.

Dearborn, Michigan-based Ford said it sold 212,236 vehicles in the U.S. in July, up 9.6% from 193,715 vehicles sold in the same month last year, making it the best July in eight years. For June, Ford had reported a 5.8% drop in U.S. vehicles sales.

Ford's car sales rose 6.4% year-over-year to 68,702 units in July, while truck sales for the month grew 6.6% to 78,583 units and utility vehicle sales surged 17.1% to 64,951 units.

Ford's retail sales for the month grew 7% 162,028 vehicles.

Sales of Ford's F-Series truck, America's best-selling truck for 37 straight years and the country's best-selling vehicle for 32 consecutive years, rose 4.6% to 63,240 units.

"July proved to be a very good month for Ford and Lincoln with positive gains across the board in all the major segments," said John Felice, Ford vice president, U.S. Marketing, Sales and Service.

Ford was less ravaged by the recession than most of its peers. The company also did not have to restructure with federal assistance. The automaker has reported a profit for each of its last twenty quarters.

Chrysler Group LLC, which is now a wholly-owned subsidiary of Italian automaker Fiat S.p.A. (FIATY), said its U.S. vehicle sales for July rose 20% to 167,667 units units from 140,102 units in July last year.

The Jeep, Dodge, Ram Truck and FIAT brands each reported year-over-year sales gains in July compared with the same month a year ago.

Reid Bigland, Chrysler's head of U.S. Sales, said, "Sales of the all-new Chrysler 200 mid-size sedan continued to increase while our Jeep and Ram Truck brands each turned in double-digit sales gains, helping to lead Chrysler Group to its 52nd-consecutive month of year-over-year sales growth."

Chrysler, which was once part of German automotive company Daimler AG, emerged from Chapter 11 reorganization in June 2009 and was bought by Italian automaker Fiat in a U.S. government-brokered deal. Fiat completed the 100% acquisition on January 21, 2014.

Toyota Motor Sales, U.S.A., Inc., a unit of Japan's Toyota Motor Corp. (TM), said its July sales rose 11.6% year-over-year to 215,802 vehicles.

"Rising consumer confidence, coupled with momentum in the marketplace, boosted auto sales in July," said Bill Fay, Toyota division group vice president and general manager. "Led by an all-time record month for RAV4 and double-digit gains for both Camry and Corolla, Toyota was the number one retail brand."

Among other automakers reporting U.S. sales Tuesday, Nissan North America Inc., a unit of Nissan Motor Co. Ltd. (NSANY.PK), said total U.S. sales for July 2014 increased 11.4% to 121,452 vehicles over the prior year's 109,041 vehicles. Total car sales for the month grew 18.1% to 80,586 units, while total truck sales edged down 0.3% to 44,649 units. Nissan Division sales for the month increased 11.5% year-over-year to 112,914 units and Infiniti Division sales grew 10.0% to 8,538 units.

GM shares are currently trading at $33.51, down 31 cents, while Ford shares are currently trading at $16.80, down 22 cents or 1.31%.