Jeep Sales Post Best-Ever June, FCA Sales Up 8%

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Fiat Chrysler Automobiles N.V. (NYSE: FCAU) reported Tuesday that June sales increased by 8% year over year to 202,264 vehicles, compared with June 2017 sales of 187,348. The Jeep brand posted a sales increase of 19% year over year as sales of the new Wrangler rose 23% to more than 23,000 units and Cherokee sales soared 89% to 22,433 units.

The Ram brand of pickups and other light trucks had its best June sales ever, up 6% to 86,989 units. Retail sales of Ram pickups rose 11% year over year to 24,036 units.

The Jeep Renegade posted a sales drop of 7% and Grand Cherokee sales fell 12%. Compass sales rose 82%. The Patriot badge is being retired and the Compass is now Jeep’s single entry in the compact SUV market.

Analysts at Cox Automotive had projected June sales at 202,000 units, a 7.8% year-over-year increase. Kelley Blue Book estimated an average selling price of $37,435 for June, up 1% year over year and up 0.7% month over month.

FCA continues to implement a strategy of reducing sales to daily rental car companies. June fleet sales accounted for 23% of the month’s sales. June retail sales came in at 155,208 units, FCA’s highest June sales level since 2004.

The company’s Jeep brand sold a total of 86,989 units in June. The Jeep Wrangler sold 23,110 units in the month and Compass sales rose to 15,142 units.

Ram pickup sales increased by 1% in June to 43,542 units. Last year, Ram sold 43,073 pickups in the month. The new 2018 Ram pickups began shipping to dealers in March.

Year over year, sales of the company’s Chrysler brand fell 32% as sales of the Pacifica minivan posted June sales of 9,114 units, down 26% for the month. Chrysler 200 sales fell 97% year over year in June to just 52 units. FCA continues to try to sell all dealer inventory on this discontinued model. Sales of the Chrysler 300 dropped 19% to 4,318 units.

The company’s Dodge brand sales rose 9% year over year in June. Dodge Caravan sales were flat at 16,267 units in the month. The company’s Journey compact SUV saw sales jump by 86% year over year to 11,286 units sold in June.

Alfa Romeo sales rose 121% in June, as sales of the new Stelvio pushed the total to 2,249 for the month. The namesake Fiat brand sold just 1,426 units in June, a 36% year-over-year decline.

FCA’s shares traded down about 0.2% Tuesday morning, at $19.06 in a 52-week range of $10.85 to $24.95. The 12-month consensus price target on the stock is $28.97.