Automotive market stays healthy, larger vehicle trend continues

May 1, 2015 at 12:00a.m.

YOUNGSTOWN

Crossovers, sport utility vehicles and trucks were still on trend for sales during April.

April’s new-vehicle sales, including fleet sales, are supposed to exceed last April’s by, at most, 6.1 percent to a total of 1.47 million new-car sales, according to TrueCar analysts.

This April is expected to have the highest total sales since 2005.

Automakers are expected to release their April sales figures today.

“With gas prices still low, we are seeing that same trend [of SUVs, crossovers and trucks] continue,” said Eric Lyman, vice president of industry insights for TrueCar. Gas prices “don’t really impact the sales; they impact the mix of sales.”

But the SUVs and other larger, more-expensive purchases made by customers increase automakers’ revenues.

TrueCar predicts General Motors will see a 5.9 percent increase in sales over last April with 269,100 units sold. The automaker’s incentive spending is projected to drop 11.7 percent from last April.

This month, TrueCar increased its new-car sales forecast for the year from 17 million units to 17.1 million because of the strong first-quarter results.

Lyman said April saw a spillover from the earlier months of this year when weather was a battle for automakers’ sales.

He estimated that about 20,000 sales could have spilled over into April.

Edmunds analysts estimate new-car sales will increase 5.5 percent from last April to 1.46 million new units sold.

The sales are down 5.1 percent from March, which is typically one of the best months for auto sales during the year because of pent-up demand from the colder months, and the end of March marks the end of the fiscal year for Asian automakers.

But April was still a solid month that showed a healthy market, Edmunds senior analyst Jessica Caldwell said.

Edmunds projects GM will sell 265,174 vehicles for a 4.4 percent increase from last April’s sales of 254,076.

Kelley Blue Book analysts anticipate a 5.2 percent year-over-year growth for total sales of 1.46 million units. KBB projects total sales in 2015 will hit 16.9 million units in 2015, a 2.5 percent year-over-year increase and the highest overall total since 2005, when sales were nearly 17 million units overall.

KBB projects GM will see a 3.5 percent increase in sales for the month with an estimated 263,000 sales. KBB analysts anticipate the compact-car segment — which includes the Lordstown-built Chevrolet Cruze — will see a 4.8 percent increase in sales.

David Sabolsky, general sales manager of Spitzer Chevrolet in North Jackson, said the dealership met its objective this month — even though it was slightly off from last April’s sales.

“The gas prices are holding well,” Sabolsky said. “That has helped the crossover sales pretty well and the truck sales.”

Sabolsky expects to have a positive summer of sales.

The next-generation Chevrolet Cruze — GM’s best-selling car — is slated to be unveiled this year.

“The steamroller keeps on going,” Sabolsky said.

Cruze, Malibu, Silverado and Equinox are all performing well at Greenwood Chevrolet in Austintown, Greg Greenwood said.

“I bet [GM] reports some pretty solid numbers,” he said. “Our success has been the reflection of the GM Lordstown plant.”

The next-generation Cruze will be a success, too, Greenwood said, because of the quality cars the assembly plant produces.

“Look at the track record,” he said. “When they get a good car, they are going to go very far.”

On the Ford side, the automaker is supposed to see an increase of 5.1 percent, according to KBB.

Mark Thomas Ford general sales manager Steve Bott said his sales this April will beat last year’s for both new and used. The Escape, Fusion, Focus and F-150 were solid sellers for the dealership.

“I think the momentum is going to keep on trucking for us,” he said.