Ford and Fiat Chrysler said on Tuesday that they logged sales gains in April, driven by continued demand for trucks and SUVs, while GM posted a sales decline as it shifts away from the rental car business.
April is expected to set a new monthly high, say analysts, and put the industry on track to break last year's 17.5 million sales record.
U.S. automakers benefited from one more selling day in April and five full weekends, with the Easter holiday falling in March this year. They're also continuing to enjoy the positive implications of an improving economy, cheap gas prices and easy auto financing.
"Even though Q1 ended with a relatively lackluster March, the industry is still as strong as ever and this month's sales will only reinforce that strength," said Edmunds.com analyst Jessica Caldwell.
She added: "Considering that April is typically the calm before the storm of summer sales, there's every reason to believe that 2016 will be a year for the history books."
During the month, Ford sales jumped 4% as the automaker sold 231,316 vehicles. The Ford Explorer was particularly popular, with sales surging 22%, while the F-Series surpassed 70,000 sales for the second month in a row. “We saw strong consumer demand in April, especially for pickups,” said Mark LaNeve, Ford's vice president of U.S. marketing, sales and service.
Fiat Chrysler sales rose 6% to 199,631 vehicles, driven by double digit gains of the Jeep and Ram brands. "Consumer preference for SUVs and pickup trucks continued unabated in April," said Reid Bigland, senior vice president of sales in North America, noting that this helped the automaker post its best April in over a decade.
GM sales fell 4% to 259,557 vehicles, as it continues to intentionally reduce the number of low-margin cars it sells to rental agencies. Yet, retail sales to individuals were up 3%, powered by increases at Buick, GMC and
Automakers have upped their promotional activity to draw shoppers to the car lot, which remains something to watch, said Kelley Blue Book analyst Tim Fleming. However, "retail demand appears to be holding steady, signaling the industry’s strong run isn’t over quite yet," said Fleming.
Shares of Ford, Fiat Chrysler and GM all fell by about 3% on Tuesday. Over the last three months, the stocks are up 15%, 18% and 3%, respectively.
