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Cruze sales up, GM post 14 percent increase in retail sales
By Kalea Hall
LORDSTOWN
Glenn Johnson, head of United Auto Workers Local 1112, is continually surprised by the Lordstown-built Chevrolet Cruze.
Five years on the market and the Cruze is still bringing in sales figures Johnson is happy to see.
“It has held its own from day one,” Johnson said.
July Cruze sales were 2 percent higher than July 2014 sales with 21,339 sales last month compared with 20,926 sales at that point last year, GM said Monday.
“It just goes to show that five years into this build, and along with the unveil of the next-generation Cruze, people still believe in the product we are building,” said Robert Morales, head of UAW Local 1714, also at Lordstown.
Today’s Cruze is “still appealing to the customer,” he said. “The customer still understands this is a great quality product.”
GM’s sales overall were up 6 percent for July with 272,512 sales. All four of GM’s brands posted their best total and retail sales since 2007. Buick’s 18 percent increase in sales, GMC’s 1 percent increase in sales and Chevrolet’s 8 percent increase all led to the gain in overall sales for the automaker.
GM’s retail deliveries were up 14 percent year over year, while fleet deliveries were down 20 percent year over year. This is because GM has pulled back on sales to rental customers and focused more on commercial and government deliveries. Government sales were up 38 percent and commercial deliveries also were up year over year for the 21st-consecutive month. Rental deliveries were down 36 percent.
Analysts think the move to reduce rental sales by GM is smart because it will provide stronger residuals and resale volume.
“You do give up some short-term revenue, but that comes with long-term benefits,” said Alec Gutierrez, senior analyst for Kelley Blue Book.
While both the Cruze and the midsize Malibu saw increases in sales, the top performers once again were the larger vehicles. Chevrolet and GMC sold more than 86,000 pickup trucks. Chevrolet posted its best July for crossover sales ever, and crossover sales increased for the eighth-consecutive month.
“I think most people will always choose the utility vehicle,” said Eric Lyman, vice president of industry insights for TrueCar.
TrueCar analysts believe the compact utility segment will be the No. 1 segment this year.
Across both foreign and domestic automakers, this July shaped up to be the best one ever in terms of revenues for new vehicles and new vehicle sales, according to TrueCar.
“We are expecting the robustness of the market to continue,” Lyman said.
Ford Motor Co. had its best July U.S. sales performance since 2006, with a total of 222,731 vehicles sold last month. Retail sales increased 5 percent.
Fiat Chrysler reported U.S. sales of 178,027 units, a 6 percent increase compared with sales in July 2014 of 167,667 units, and the group’s best July sales since 2005.
The Chrysler, Jeep, and Ram Truck brands each posted year-over-year sales gains. The Jeep brand’s 23 percent increase was the largest sales gain of any Fiat Chrysler U.S. brand during the month.
American Honda Motor Co. Inc. reported an increase of 7.7 percent in July 2015 on sales of 146,324 Honda and Acura vehicles. Honda and Acura trucks led the July sales gain, combining for a 13.2 percent increase on sales of 70,613 vehicles.
Toyota Motor Sales U.S.A. Inc. reported July 2015 sales of 217,181 units, an increase of 0.6 percent from July 2014 on a volume basis.
Toyota Division posted July 2015 sales of 187,365 units, down 0.6 percent.
Lexus reported July sales of 29,816 units, up 9.1 percent from July 2014.