Market Overview

Automakers Post Mixed June Sales Results; GM Eyes Potential Interest Rate Cut

Automakers Post Mixed June Sales Results; GM Eyes Potential Interest Rate Cut

The big carmakers had mixed sales results in June, with the market showing continued demand for light trucks and SUVs, but declines in sales of passenger cars.

The nameplates that have made a push into truck sales were the better performers in June. 

Fiat Chrysler Automobiles NV (NYSE: FCAU) reported its best June in 14 years, with sales up 2% on the back of Ram pickups. Sales of that model were up 56% over last year, the company said. 

“Ram has been on a tear,” Reid Bigland, FCA's head of U.S. sales, said in a press release. 

General Motors Co (NYSE: GM), which reports quarterly instead of monthly sales, said Tuesday that second-quarter sales fell 1.5%. GM, the No. 1 U.S. automaker, found good news in sales of crossovers, which were up 17%.

Sales of the Buick Envision compact SUV were up 28% and Buick Enclave sales jumped 21%.

With low unemployment and inflation, GM chief economist Elaine Buckberg said the company expects to rebound, especially if interest rates drop.

“If the Fed cuts rates, as widely expected, lower financing costs will provide further support to auto sales." 

Other June Sales Figures

Toyota Motor Corp (NYSE: TM) reported a 3.5% decline for the month, led by falling sedan sales. The RAV4, Tacoma and light trucks led sales, and hybrids were up more than 30%.

Nissan Motor Co Ltd (OTC: NSANY) had the biggest drop, reporting a 14.9% year-over-year sales decline. Total car sales were down more than 18% year-over-year, and even sales of the popular Rogue SUV dropped 22.5%.

Hyundai Mtr Co/GDR (OTC: HYMTF) reported a 1.5% June sales increase thanks to strong SUV and truck sales.

Ford Motor Company (NYSE: F) reports quarterly sales results Wednesday.

Price Action

The movement in auto stocks was as mixed as the manufacturers' results. GM shares were down 1.37% at the time of publication Tuesday; Fiat Chrysler was trading slightly positive; Toyota shares were up by 0.93%; and Ford shares were down 0.44%. 

Related Links:

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