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Cruze sales drop 8 percent in August
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YOUNGSTOWN
Three months of record- high sales from May through July for the Lordstown-built Chevrolet Cruze were snapped in August when sales slid by 8 percent from the same time a year earlier, General Motors said Wednesday.
Although Cruze sales dropped from 25,975 last year to 23,909 last month, the numbers still impressed analysts as the model has sold 183,045 units through the first eight months of this year — up 18 percent from the same period in 2012.
“Even though sales were down 8 percent, it’s still been a strong year for the Cruze,” said Tim Fleming, an analyst at Kelley Blue Book. “It’s a competitive segment. Toyota is pushing the new Corolla, which is coming out very soon, and the Honda Civic has been all new the last two years. I wouldn’t read too much into that three-month stretch; it was just a temporary spike, and that 18 percent improvement for the Cruze this year is just fantastic.”
Meanwhile, GM said August was its best month yet in 2013. The largest U.S. automaker reported selling 275,847 vehicles last month for a total increase of 15 percent. Retail sales increased 22 percent, while fleet sales were down 8 percent.
“The second half of 2013 is off to a very solid start for GM, and our model-year changeover and new product launches are going smoothly,” said Kurt McNeil, vice president of U.S. sales operations. “We have a lot of momentum, and we feel good about the direction of the U.S. economy as we prepare to launch even more new products.”
Individual consumers drove sales at GM last month with all its brands posting major gains. Cadillac was up 38 percent; Buick was up 37 percent; GMC was up 14 percent; and Chevrolet was up 10 percent.
U.S. auto sales soared last month on a combination of factors as the industry continued its yearlong stretch at the top of the economic recovery.
Toyota, Ford, Nissan and Chrysler all reported double-digit U.S. sales gains last month, lifted by strong pickup truck and small-car sales.
Toyota posted the biggest gain, with sales up nearly 23 percent over August of last year. Nissan sales were up 22 percent, the best August in company history, and Chrysler had its best month in six years with a 12 percent gain, which matched Ford sales.
Honda also set an August record, increasing sales by 27 percent, and Hyudai sales were up 8 percent.
Volkswagen reported a drop of 1.6 percent in U.S. sales.
Industry analysts say August could be the best sales month since May 2007, when $3-a-gallon gasoline set off panic buying of fuel-thrifty vehicles.
Some automotive groups have suggested annual sales will reach a rate of 16 million, a revision from the 15.5 million forecast just a few months ago and a pace not seen since before the great recession.
Jessica Caldwell, a senior analyst at the automotive information website Edmunds.com, said consumers paid one of the lowest new-car interest rates in history at 3.9 percent. She added that leasing has made up a quarter of all new car sales this year with lower payments attracting more buyers.
Although incentives remained stable in August averaging $2,477 across the industry, according to TrueCar.com, the average transaction price in August reached $31,252 — a record high that was up 3.2 percent over last year.
“Pent-up demand, relatively low interest rates and aggressive marketing from every major automaker led to strong retail sales across all major vehicle segments,” said Karl Brauer, a senior analyst at Kelley Blue Book. “If housing starts remain strong, and if fuel prices and unemployment numbers remain stable, we should see this trend continue into the foreseeable future.”
The Associated Press contributed to this story.