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Cruze sales down in July
By Kalea Hall
LORDSTOWN
While the Chevrolet Cruze saw a drop in sales in July, its competitor the Honda Civic saw an increase.
Cruze sedan and hatchback sales came in at 12,278, down from 13,723 sold last year.
The sedan is built at the Lordstown Assembly Complex and the hatchback is built in Mexico.
There were 10,218 sedans sold and 2,060 hatchbacks in July. Hatchbacks had yet to hit the market in July 2016.
Meanwhile, Honda on Tuesday reported total July Civic sales of 36,683, up from last year’s 32,952 Civic sales.
Honda’s total car sales were up 6.9 percent year over year.
Alec Gutierrez, senior analyst for Kelley Blue Book, explained that while Honda’s competitors are solid, consumers still perceive foreign automakers to have the top car offerings.
“While we talk a lot [about how] sedan demand isn’t what it was, there is still a need for mid-size sedans and compact sedans,” he said. “Only the cream of the crop really rise to the top. Unless you are Honda or Toyota it’s going to be a tough, tough fight to maintain share in those segments.”
The fight has also been tough because consumers have gravitated away from cars to crossovers, such as the Chevrolet Equinox, and trucks.
The Equinox, Buick Acadia, Buick Envision and Cadillac XT5, all crossovers, had their best July on record, GM said.
“Obviously the sagging car sales are continuing and it’s across the industry with a consumers preference for crossovers,” said Glenn Johnson, president of the United Auto Workers Local 1112, who represents Lordstown assembly plant workers. “We will continue to build the best car we can. We are building one of the best cars in the industry.”
The Cruze was recently judged as one of the safest vehicles on the road by the National Highway Traffic Safety and Administration. The NHTSA gave the compact car a 5-Star safety rating.
J.D. Power’s study for Automotive Performance, Execution and Layout ranked the Cruze in fifth place in the small-car segment, up from 18th place last year. This was the second-largest APEAL improvement in the industry.
Earlier this year, Consumer Reports selected the Cruze as a “Top Pick.” The Cruze is the first domestic compact car in more than a decade to receive the “Top Pick” title. From 2013 through 2016, the Subaru Impreza took the title.
“They [the awards] could turn into sales,” said Robert Morales, president of the Local 1714, who represents the Lordstown fabrication plant workers.
Dropping demand for the Cruze has led GM to cutback production. In January, the third shift at the plant was cut and just recently the plant had a three-week shutdown following a two-week scheduled vacation shutdown.
“Production is getting back up to speed,” Johnson said. “We added some things to the trim shop to make things more efficient.”
Outside of the Toyota Motor North America Inc., which reported July sales of 222,057 units, up 3.6 percent from last year, automakers saw decreased sales last month.
GM reported a drop in its total sales of 15 percent to 226,107.
American Honda Motor Co. Inc. reported total July sales of 150,980 Honda and Acura vehicles, a 1.2 percent decline from July 2016.
Ford Motor Co.’s sales were down 7.5 percent to 200,212.
Fiat Chrysler Automobiles U.S. LLC reported sales of 161,477 units, a 10 percent decrease compared with sales in July 2016.