The Canadian Press - ONLINE EDITION

Big discounts help US auto sales sizzle, with best July sales since 2006

  • Print

DETROIT - Big discounts helped U.S. auto sales sizzle in July.

Toyota, Ford, Nissan and Chrysler all saw double-digit sales gains. General Motors' sales were up 9 per cent compared with last July, while Hyundai's rose 1.5 per cent. Of major automakers, only Honda and Volkswagen saw declines.

It was the best July for the industry since 2006. New vehicle sales rose 9 per cent to 1.4 million, according to Autodata Corp.

Automakers typically offer deals in the summer to clear out inventory before cars from the new model year arrive in the fall. But July's discounts were unusually high.

Incentives rose 8 per cent — or $216 per vehicle — over last July, according to Jesse Toprak, chief analyst for the car shopping site Cars.com. Incentives averaged $2,774 per vehicle, their highest level since August 2010. Toprak said Ford, Toyota, Volkswagen and Hyundai were the most generous; GM and Honda spent less.

Toyota was offering zero-per cent financing on a five-year loan and $1,000 cash back on the Camry sedan. Ford offered $6,000 cash back on a new Expedition SUV. And Chrysler was peddling a $99 per month, two-year lease on a Dodge Dart.

Edmunds.com said 13.5 per cent of new car loans in July had zero-per cent financing, the highest level since December 2010.

John Felice, Ford's U.S. sales chief, says a slowing rate of sales growth will force automakers to get even more aggressive to steal sales away from competitors. That's already happening with small and midsize cars. For instance, buyers are paying an average of $1,000 less for a Ford Fusion sedan than they did a year ago, Felice said.

But demand for SUVs and trucks remains strong, and so does pricing. Overall, Felice said, buyers are still paying $800 more per vehicle than they did last year. That's because even with discounting, more people are choosing pricier SUVs and loading them up with features.

Michelle Krebs, a senior analyst at AutoTrader.com, isn't alarmed about growing incentives. Things have changed from a decade ago, when automakers were making too many vehicles and had to use across-the-board incentives to sell them. Companies have cut back on production, she said, and they use incentives in a much more strategic way. They're also profitable, so they can afford to give a little on price.

Based on July's sales, J.D. Power and Associates raised its forecast for full-year U.S. sales to 16.3 million vehicles. That's approaching the peak of 17 million set in 2005. Auto sales have led the uneven U.S. economic recovery, with sales increases of 1 million or more vehicles in each of the last four years. But that pace is slowing. U.S. sales totalled 15.6 million in 2013.

Chrysler saw the biggest gain in July, with sales up 20 per cent to 140,102, led by the Ram pickup and the new Jeep Cherokee small SUV. Chrysler sold nearly 15,000 Cherokees, almost matching sales of the larger Grand Cherokee. Jeep sales rose 41 per cent overall.

Toyota said its U.S. sales gained 12 per cent to 215,802 on double-digit gains for the Camry and Corolla sedans and a 37 per cent increase in sales of the newly redesigned RAV4.

Toyota edged out Ford, whose sales increased 10 per cent to 204,373. The country's bestselling vehicle, the Ford F-Series pickup, was up 5 per cent to 63,240, while Ford's new Transit Connect van was up 41 per cent.

GM's sales rose 9 per cent to 256,160 as strong demand for its new large SUVs outweighed lingering concerns about the automaker's recent string of recalls. Chevrolet Tahoe sales were up 51.5 per cent.

Other automakers said:

— Honda's sales fell 4 per cent to 135,908. Accord sedan sales rose 11 per cent. Sales in the Acura luxury division fell 18 per cent, however. Acura sold out of TL and TSX sedans as it launches their replacement, the new TLX. Honda also spent less on incentives than its rivals, according to Cars.com.

— Nissan sales rose 11 per cent to 121,452. Sales of the electric Leaf increased 62 per cent to 3,019, a record July for the car, which went on sale in 2010.

— Hyundai sales rose 1.5 per cent to 67,011. Sonata sedan sales were up 19 per cent, while the Santa Fe SUV jumped 26 per cent.

— Kia sales rose 7 per cent to 52,309. Sales of the Sorento SUV increased 75 per cent.

— Subaru sales jumped 27 per cent to 45,714 on the strength of the new Forester SUV.

Fact Check

Fact Check

Have you found an error, or know of something we’ve missed in one of our stories?
Please use the form below and let us know.

* Required
  • Please post the headline of the story or the title of the video with the error.

  • Please post exactly what was wrong with the story.

  • Please indicate your source for the correct information.

  • Yes

    No

  • This will only be used to contact you if we have a question about your submission, it will not be used to identify you or be published.

  • Cancel

Having problems with the form?

Contact Us Directly
  • Print

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

Have Your Say

New to commenting? Check out our Frequently Asked Questions.

Have Your Say

Comments are open to Winnipeg Free Press print or e-edition subscribers only. why?

Have Your Say

Comments are open to Winnipeg Free Press Subscribers only. why?

The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.

letters

Make text: Larger | Smaller

LATEST VIDEO

J.P. Vigier’s Whiteboard: Coach Maurice’s first full season

View more like this

Photo Store Gallery

  • MIKE.DEAL@FREEPRESS.MB.CA 110621 - Tuesday, June 21, 2011 -  Doug Chorney, president Keystone Agricultural Producers flight over South Western Manitoba to check on the condition of farming fields. MIKE DEAL / WINNIPEG FREE PRESS
my2011poy
  • Ruth Bonneville Winnipeg Free Press January 18, 2011 Local Standup -

View More Gallery Photos

Poll

Should the Canadian Museum for Human Rights use the word 'genocide' in exhibits on Indian residential schools?

View Results

View Related Story

Ads by Google