Cars and Drivers

Chrysler Sales Surge in July

Automakers are expected to release July sales numbers next Friday, but sales estimates have already begun to hit the tape. Sales of new vehicles are expected to post a seasonally adjusted annual rate (SAAR) of sales of 16.6 million for July, an increase of 11.6% year-over-year, according to Kelley Blue Book (KBB).

Another auto industry analysis firm, Edmunds.com, figures that July sales will top 1.46 million in July, raising the SAAR to 16.8 million, the highest July sales total since 2006. An analyst at the firm noted, “Shoppers are looking past news of recalls and rising gas prices and they’re finding affordable interest rates and other incentives that make it easier to buy a new car.” That is probably very welcome news for General Motors Co. (NYSE: GM), where recall notices have dominated press coverage of the company so far this year.

The July forecast for GM calls for sales of 259,000 vehicles, up 10.7% year-over-year but a dip of about 0.1% in overall market share. July sales are 3.2% below June 2014 sales, according to Edmunds.com. GM will continue to hold the top spot in the U.S. market with a projected 17.7% share.

Toyota Motor Corp. (NYSE: TM) is expected to sell between 213,000 and 217,000 vehicles in July, up 10.1% to 12.4% year-over-year and up 7.7% month-over-month. KBB notes that Toyota’s market share is down about 0.2% from July of last year to 14.5%. July is set to be the first month since last August when Toyota will hold the second highest share of the U.S. market.

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Ford Motor Co. (NYSE: F) is expected to sell 210,000 to 213,000 vehicles in July, up 8.8% to 10.2% year-over-year, but down nearly 4% compared with June 2014. Ford’s market share is down 0.4% year-over-year to 14.3%.

Ford sales are being challenged as the company prepares to introduce its newly designed F-150 Series pickup truck. The company has slowed production of the existing model as it transitions to the new model, which will include several body panels made with aluminum to reduce weight and improve mileage. Once the new models get to dealer showrooms, Ford hopes that sales will make everyone forget the pain of the transition.

Chrysler is forecast to sell about 172,000 vehicles, up about 22% year-over-year but down slightly from June sales, as well as up to 11.7% market share, 1.1% higher than last year. The still-new Jeep Cherokee and the new Ram pickup continue to sell impressively for the company.

Honda Motor Co. Ltd. (NYSE: HMC) is expected to sell 145,000 to 151,000 vehicles in July, up 2.3% to 6.8% year-over-year. Edmunds.com said the month-over-month increase will be 12.2%, while KBB has market share dropping 0.5% from July 2013 to 10.3%.

Nissan is also posting an increase in sales of around 14%, compared with July 2013. Month-over-month sales are up 12.8% and market share is up to 8.5%.

Volkswagen sales are expected to be down about 1% to up 2.5% year-over-year.

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