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Auto industry sees strong August sales

U.S. auto sales are expected to top 17 million units in 2015 for the first time since before the Great Recession.

Nathan Bomey and Chris Woodyard
USA TODAY
New cars on a dealer's lot in Fairfax, Va, Dec. 30, 2014, waiting -- not very long -- for buyers, who keep payments low with long loans, but the extended loans could keep buyers out of the market for years because of how long it takes for the car to be worth more than the loan balance.

The auto industry saw the strongest sales in a decade in August as U.S. consumers continued their exodus from cars into crossovers, sport-utility vehicles and pickup trucks.

Fueled by low gas prices and high consumer confidence, the auto industry saw a seasonally adjusted rate that, if maintained all year, would amount to the sale of 17.8 million new cars and trucks, highest single-month rate since July, 2005, and up from 17.3 million vehicles for the same month last year, Autodata reports.

Without the adjustments, individual automakers encountered mixed results due to comparisons since August had one fewer sales day than the same month a year ago and the three-day Labor Day holiday, traditionally a hot sales weekend for cars, falls entirely in September this year.

General Motors sales fell 0.7% in August, compared to the same month a year earlier, as the automaker favored retail sales over less profitable fleet sales. Fiat Chrysler reported a 1.7% gain, and Ford sales rose 5.6%, Autodata says.

Toyota's U.S. sales fell by 8.8% for the month. Nissan's sales fell 0.8% for the month. Honda sales fell 6.7%.

The industry was reaping high prices for the vehicles it sold as well. The average price that consumers actually paid for a new vehicle in August was $33,543, up $1,107, or 3.4%, from last year, reports Kelley Blue Book.

Demand remains robust for trucks instead of cars. Market share for full-size pickup trucks rose from 11.3% a year ago to 13% in August, while market share for SUVs and crossovers rose from 17.5% to 19.5%. That trend is boosting the bottom line for the major automakers because bigger vehicles are more profitable than cars, which shoppers are snubbing. "Cars remain the big challenge," AutoTrader.com analyst Michelle Krebs said.

"Consumers continue to benefit from low fuel prices, low inflation and low interest rates," Ford's senior economist, Yong Yang, said in a conference call. And Nissan Senior Vice President Fred Diaz said: " I think we continue to see great momentum in the auto industry and the rest of the calendar year."

But analysts believe sales may be leveling off after several consecutive years of gains.

"Overall, we continue to see the industry in a healthy and steady plateau" for the next two to three years, Barclays analyst Brian Johnson said Thursday in a research note.

General Motors

While its overall sales fell 1%, GM says its sales to individual customers increased and that it has picked up a percentage point of market share.

GM says it sold 270,480 cars and trucks in August, down from 272,423 in the same month last year. The slightly lower sales was due to a 24% drop in sales to rental, government and commercial fleets, which aren't as profitable as sales to individual customers.

When it came to sales to individuals, GM says they were up 6% compared to a year ago.

"GM's retail sales increase far outpaced the industry in August, and we have grown our retail share for five months in a row compared to last year," says Kurt McNeil, GM's U.S. vice president of sales, in a statement.

He indicated he expects the momentum to continue with the introduction of a redesigned Chevrolet Cruze and Malibu, the launch of diesel engines in the midsize Chevrolet Colorado and GMC Canyon pickups, restyling of the Chevrolet Silverado and rollout of Apple CarPlay and Android Auto.

Ford

Ford's sales rose 5% for the month, powered by a 12% increase in sales of SUVs and crossovers. Low gasoline prices have sparked a migration to bigger vehicles, and that's benefiting Ford.

Ford downplayed any concerns that stock market volatility could cause consumers to hold off on vehicle purchases.

U.S. sales chief Mark LaNave said showroom traffic and sales were "very, very strong at the end" of the month, when the stock market gyrated wildly in the wake of China's market turbulence.

To be sure, sales of the automaker's cars fell 7%, as the Focus compact sedan and Fusion mid-size car posted sales declines.

It was largely big vehicles driving the Ford increase. The Edge crossover rose 36%, and sales of Ford vans rose 70% to 18,081 units.

The company said production of the F-series pickup truck accelerated in August, helping power a 5% increase in sales for the most popular vehicle in the U.S. That included a 15% increase in retail sales.

Inventory at dealerships is still below optimal levels, LaNeve said. F-series production had been lower than usual in the first two-thirds of the year after the 2014 changeover to a redesigned version of the vehicle.

"Ford might be getting some of its groove back by finally getting the F-series into the market," AutoTrader's Krebs said.

Fiat Chrysler

Fiat Chrysler's U.S. sales ticked upward in August, compared to the same period a year earlier, fueled by a strong performance for the Jeep brand.

The 2% sales growth marked the 65th consecutive month of gains for Fiat Chrysler, which is capitalizing off of consumers' embrace of sport-utility vehicles amid low gasoline prices.

Other automakers will release their August auto sales throughout the day.

"In spite of a tough 2014 comparison and extreme stock market volatility, our dealer's competitive spirit kicked in and propelled us," said Reid Bigland, head of U.S. sales for Fiat Chrysler.

The company's Jeep brand enjoyed an 18% increase for the month, and the Ram brand rose 6%. But the Fiat brand's struggles continued as it rose only 1% and the Chrysler brand fell 14%.

Nissan

Nissan's U.S. sales slipped mostly because of a rough month for car sales, the brand's bread and butter, which fell 7%. Sales of crossovers, SUVs and pickups rose 6%.

One bright spot was the Japanese automaker's luxury brand, Infiniti, which enjoyed a 16% gain.

Audi

Sales of crossovers and SUVs powered the Germany luxury brand in August. The Q3, Q5 and Q7 utility vehicles recorded a combined 41% increase.

Overall it was Audi's second best month ever in the U.S. with sales of 18,794 vehicles.

Toyota

Toyota sales in August fell by 9% compared to the same month a year ago, with less demand for some key car models being offset by some crossover and truck models.

Camry midsize car sales fell 11%. Sale of the the smaller Corolla were down 0.4%. But the Tacoma pickup saw a 17.5% sales increase and the Highlander crossover saw a 20.5% leap in sales.

Overall, the Toyota division sold 190,894 vehicles in August, down 10.5%, while the Lexus luxury division sold 33,487 cars and SUVs, up 2%, its best-ever sales month.

"Consumer confidence is at its highest level since January, despite predicted slower August industry sales," says Bill Fay, head of the Toyota Division, in a statement. "Tacoma and Highlander had their best sales month since 2003. In September, we are excited for the launch of the all-new Scion iM, iA and the 2016 Tacoma."

Volkswagen

Volkswagen reported a sales drop of 2.1% in August, but says its Golf compact had a strong performance.

Sales of the basic Golf were up 6%, but when all its new iterations are thrown in -- the electric version, GTI, Golf R and SportWagon -- the increase over the same month last year is 86%.

"We are encouraged by the continued strength of the Golf family," says Mark McNabb, chief operating officer of Volkswagen of America.

VW also pointed to the Tiguan compact crossover, up 47%. But Beetle and Jetta sales were down.

Honda

Honda's U.S. sales slipped 7% as consumers spurned cars during the month. Low gasoline prices crushed the Japanese automaker during the month, driving car sales down 17%. The Accord sedan fell 20% for the month and the Fit fell 52%.

But sales of crossovers, SUVs and trucks increased 7% for Honda.

Follow USA TODAY reporter Nathan Bomey on Twitter @NathanBomey.

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