U.S.-Made Car Sales Outpace Imports in June
In a rare coup for domestic manufacturers, sales of U.S.-built new cars increased at a faster rate in June than sales of imports.
Americans purchased 8.8% more domestically produced cars last month than in June, 1985. Import sales increased by only 6.4%.
The increase in total import sales was due almost exclusively to sales of Hyundai, the new Korean import. All the major Japanese imports posted sales declines for the month.
New car sales in the U.S. totaled 1,000,761 in June, up 8.2% from the 925,167 sold in the same month of 1985. The sales figures were fueled by a 21.2% increase in the sale of domestic auto sales during the last 10 days of June.
Industry analysts attributed the stronger domestic showing to incentives offered by the major U.S. manufacturers. They said the imports were hurt by the rapid sequence of price increases by Japanese auto makers.
Incentives Pay Off
“As long as interest rates are low, incentive programs are in place and the general level of business is good, we should see pretty good domestic auto sales,” said David Healy, an auto analyst with Drexel Burnham Lambert.
The 21.2% increase in domestic auto sales is an indication, Healy said, that sales may have been given an added boost by consumers rushing to buy before the anticipated end of many sales incentive programs. General Motors, however, has since enhanced its cut-rate financing program and extended it through September, when it will introduce 1987 models. Ford and Chrysler are expected to follow.
Import sales did not fare as well. Although previously thought to be immune to price increases because of high demand and limited availability, analysts said it appears the recent series of price hikes implemented by the Japanese manufacturers are taking their toll on sales.
“The price increases (by Japanese auto makers) are biting into sales a little bit,” said Healy, adding that “import dealers are no longer extracting extra money for a position on the waiting list.”
Light truck sales were healthy in June as well. Domestic manufacturers sold 345,624 light trucks last month, up 3.1% from the 335,293 sold last year. Imports increased 6.8% to 62,239, compared to 58,253 sold in June, 1985.
Auto Sales
June 1986 1985 change GM 417,292 381,471 +9.4 Ford 179,301 174,075 +3.0 Chrysler 109,052 90,065 +21.1 AMC* 5,726 9,066 -36.8 VW U.S. 6,453 6,098 +5.8 Honda U.S. 18,220 12,141 +50.1 Nissan U.S. 217 3,759 -96.9 DOMESTIC 736,261 676,675 +8.8 Toyota 47,241 52,125 -9.4 Nissan 52,031 53,473 -2.7 Honda 31,346 35,414 -11.5 Mazda 14,665 16,175 -9.3 Subaru 13,657 14,554 -6.2 Volvo 11,456 9,458 +21.1 Hyundai 15,131 -- -- VW Imports 13,093 12,270 +6.7 Others 65,880 55,023 +19.7 IMPORTS* 264,500 248,492 +6.4 TOTAL U.S. 1 mill. 925,167 +8.2
*Estimate
Los Angeles Times
