Coin Press - Mixed US auto sales in Q2 amid high gas prices

The sales overall showed a picture of industry resiliency in a quarter when gasoline prices loomed above $4 a gallon due to the US-Iran war for the majority of the time.

General Motors delivered 714,896 vehicles during the three-month stretch, a drop of 4.2 percent from the year-ago period. A decline had been expected, but the sales were a bit above the level of leading forecasters as the Detroit giant offset lower electric vehicle sales with increases in sport utility vehicles and trucks.

But there were also signs of some consumers gravitating towards more fuel-efficient vehicles.

Toyota's sales were lifted by gains in hybrid vehicles, while Honda pointed to higher sales of models known for fuel efficiency such as the CRV compact SUV and its trademark sedans. Honda's sales increased 8.4 percent to 420,089.

"At a time when affordability is more important than ever, the exceptional value offered by Honda and Acura is helping us retain customers and attract buyers from competing brands," said Lance Woelfer, vice president with American Honda Motor Co.

"Our commitment to fuel efficiency is also resonating with consumers, with hybrid models accounting for about 30 percent of Honda sales as customers increasingly seek more efficient vehicle options," he said.

Hyundai and Jeep-maker Stellantis also reported higher sales roughly in line with analyst expectations.

Edmunds.com had projected industrywide sales of 4.1 million for the quarter, down about one percent from the year-ago level. Edmunds analysts had cited higher gasoline prices and lofty interest rates as headwinds to sales.

GM cited discontinued products as a factor in its year-over-year decline.

Figures released by the company also showed a drop in sales of GM electric vehicles, such as the Chevrolet Silverado EV pickup truck. Legislation backed by US President Donald Trump last year eliminated a consumer tax credit for such vehicles.

But GM enjoyed increases in sales of several sport utility vehicles, including the Chevrolet Trailblazer, Traverse and Equinox. A company presentation also highlighted higher sales for the GMC Sierra pickup truck.

"Our business is performing well, and customer demand is resilient, especially for our trucks and SUVs," said GM North America President Duncan Aldred, who cited GM's "discipline" in managing inventories and limiting discounts.

- Gas prices down from peak -

The average price at the pump is currently $3.85 a gallon of regular, according to the American Automobile Association, still about 20 percent above year-ago levels and drawing attention from Trump and other politicians.

Prices retreated somewhat throughout June after the two countries signed a memorandum of understanding on terms to end the war.

Analysts consider higher gasoline prices a headwind for low- and middle-income consumers, but note that other car buyers in the US have benefited from stock market records and appreciating home prices.

"The new car market has continued to run towards the well-heeled consumer," said Cox executive analyst Erin Keating, adding that lower-income shoppers have gravitated to the used-car market.

At Toyota, overall sales rose 1.1 percent to 673,971 vehicles.

The figures included a 19.5 percent increase in "electrified" vehicles, which at Toyota includes hybrid options.

"Combined with our commitment to affordability and a broad range of vehicles starting under $35,000, we’re well-positioned to expand access to electrification while delivering value across every powertrain," said Andrew Gilleland, senior vice president at Toyota Motor North America.

Stellantis reported sales rose 6 percent to 328,284 vehicles. The increases were led by the Ram brand, with pickup truck models scoring increases and offsetting lower Jeep brand sales.

Sales of Hyundai brands Hyundai and Kia rose 3.4 percent to 468,892.

D.Avraham--CPN