U.S. Auto Sales Tumble 10% for Month of June
Total U.S. car sales fell 10% in June as domestic producers posted a 13.6% decline and imports rose a scant 0.1%, the auto makers reported Monday.
Although June is traditionally the strongest month for car sales, the eight domestic auto makers said they sold only 661,482 cars during the month, down sharply from the 736,261 units that they sold in June, 1986. Meanwhile, a total of 276,000 imported cars were sold last month, up slightly from 265,133 in the same period last year.
“Sales are unsatisfactory, but they are starting to pick up,” said Thomas O’Grady, an auto industry analyst with Integrated Automotive Resources in Wayne, Pa. “There is some stability in the marketplace.”
Big Drop for AMC
Among the major domestic manufacturers, General Motors, which has been plagued by sluggish sales over the past year, posted a 24.5% decline this June to 327,453 units. Ford, which has gained market share at the expense of GM in recent months, said its sales rose 2.6% to 191,340. Chrysler, which has also had fairly strong sales over the past year, posted a decline of 21.8% to a total of 88,730 units.
American Motors, which recently agreed to be acquired by Chrysler, said it sold just 3,009 cars during the month, down 49.5%, while Volkswagen of America said it sold 4,876 cars, down 27.3%.
Meanwhile, the U.S. operations of the Japanese auto makers continued to make strong inroads into the domestic market. Honda, which has built cars in Ohio since 1982, said its sales of U.S.-built cars rose to 25,015 in May, up 32.0%. Toyota, which started producing cars for its own distribution system last fall in the GM-Toyota joint-venture plant in Fremont, Calif., said it sold 2,586 U.S.-built units during the month.
Nissan’s Increase Dramatic
Nissan said its sales of domestic cars rose 8,085%--to 18,473 units from just 217 last year. The dramatic increase in 1987 sales reflects a four-month closing of its Smyna, Tenn., plant for retooling.
Among the major Japanese firms, Toyota said its sales of imported cars rose 2.1% to 50,170 units, while Nissan reported sales of 31,500 units, off 41.8%. Honda said its import sales declined 4.7% to 31,078 units.
For the industry overall, June’s figure equaled a seasonally adjusted annual sales rate of 10.3 million units. The annual sales rate is the number of cars that would be sold during an entire year if the month’s sales pace continued for 12 months.
AUTO SALES Percentage changes in auto sales for the month of June are based on daily rates rather than total sales volume. There were 26 selling days in the current period and 25 selling days in the year-ago period.
% June 1987 1986 change GM 327,453 417,292 -24.5 Ford 191,340 179,301 +2.6 Chrysler 88,730 109,052 -21.8 Honda U.S. 25,015 18,220 +32.0 AMC* 3,009 5,726 -49.5 VW U.S.* 4,876 6,453 -27.3 Nissan U.S. 18,473 217 +8085 Toyota U.S. 2,586 -- -- DOMESTIC 661,482 736,261 -13.6 Toyota Imp. 50,170 47,241 +2.1 Nissan Imp. 31,500 52,031 -41.8 Honda Imp. 31,078 31,346 -4.7 Mazda 21,144 14,665 +38.6 Subaru 14,343 13,406 +2.9 VW Imp. 12,813 1,392 +785 Volvo 8,793 11,456 -26.2 Hyundai 27,189 15,131 +72.8 Others* 78,970 78,465 -3.2 IMPORTS2 276,000 265,133 +0.1 Total U.S. 937,482 1.0 mill. -10.0
