Major Automakers Report Strong U.S. May Sales

(RTTNews) - Major automakers on Tuesday reported higher U.S. vehicles sales for the month of May, as demand for new vehicles continued to grow amid improvement in consumer confidence as well as the country's economy. General Motors Co. (GM), Chrysler Group LLC and Toyota Motor Corp. (TM) all reported double-digit growths in vehicles sales, while Ford Motor Co. (F) reported a 3% increase compared to last year.

GM, the largest U.S. automaker, said that its May U.S. sales rose 12.6% to 284,694 vehicles from 252,894 vehicles in the same month last year.

The automaker said this was its best May in seven years and its best total sales since August 2008.

There were 27 selling days for May 2014, compared to 26 for last year.

Retail sales for the month were up 10%, while fleet sales were up 21%.

Among GM's four brands, Chevrolet sales surged 14.2% to 205,010 units, GMC sales rose 8.3% to 45,039 units, Cardillac sales grew 6.4% to 14,688 units, while Buick sales increased 11% to 19,957 units.

"The momentum we generated in April carried into May, with all four brands performing well in a growing economy and 17 vehicle lines posting double-digit retail sales increases or better," said Kurt McNeil, GM's U.S. vice president of Sales Operations.

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 first quarter profit that plunged 82% from last year, mainly hurt by the hefty recall-related charge.

Dearborn, Michigan-based Ford said it sold 254,084 vehicles in the U.S. in May, up 3% from 246,585 vehicles sold in the same month last year. For April, Ford had reported a 0.7% decline in U.S. vehicles sales.

Ford's car sales grew 1.7% year-over-year to 88,926 units in May, while truck sales for the month fell 0.8%% to 87,749 units and utility vehicle sales surged 9.5% to 77,409 units.

"Fusion and Escape had their best months ever, which helped us to our strongest May result since May 2004," said John Felice, Ford vice president, U.S. Marketing, Sales and Service. "Explorer continued to gain ground in the midsize utility segment with its best monthly sales performance in nearly 10 years, while Lincoln MKZ saw its best May ever."

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, fell 4.3% to 68,520 units, marking its best April U.S. sales since 2006.

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 nineteen quarters. The company has also reinstated its quarterly stock dividend.

Last month, Ford said its president and chief executive officer Alan Mulally has decided to retire from the company on July 1. He will be succeeded by Mark Fields, the company's chief operating officer since December 2012.

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 May rose 17% to 194,421 units from 166,596 units in May last year. This marks the 49th consecutive month of year-over-year sales gains for Chrysler.

FIAT brand sales for the month grew 18%, with Dodge brand sales up 3%, and Chrysler Town & Country sales up 37%.

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 May sales rose 17% year-over-year to 243,236 vehicles.

"Industry sales in May soared as consumer confidence improved and demand for new vehicles continued to strengthen," said Bill Fay, Toyota division group vice president and general manager. "Toyota had its best month in six years led by strong Camry, Corolla and Hybrid sales."

Among other automakers reporting U.S. sales Tuesday, Nissan North America Inc., a unit of Nissan Motor Co. Ltd. (NSANY.PK), said its May U.S. vehicle sales rose 18.8% to 135,934 units from 114,457 units in the same month last year. Total car sales for the month surged 31.2% to 86,835 units, while total truck sales grew 1.7% to 49,099 units.

GM shares are currently trading at $35.13, up 27 cents, while Ford shares are currently trading at $16.54, up 10 cents.