U.S. Car Sales Climb a Strong 10.3% for May : Imports, Stung by Exchange Rates, Held to 4.2% Increase
Buoyed by surprising strength from Detroit’s Big Three, total U.S. car sales rose 10.3% in May, the auto industry reported Friday.
With General Motors, Ford and Chrysler all posting impressive gains during the month, sales of new domestic cars rose 12.8% from May of 1987. Meanwhile, imports--hurt by rising prices due to unfavorable exchange rates--posted an increase of just 4.2%.
Industry analysts said sales incentives by Detroit auto makers have helped them gain ground at a time when repeated price hikes on Japanese imports finally seem to be causing sticker shock among consumers.
“The domestics are really aggressively going after market share,” said Cynthia Certo, an auto industry analyst with Integrated Automotive Resources, a Wayne, Pa., research firm.
“Some of the Japanese are hurting because of the price increases. The Big Three are holding prices steady. For the 1988 model year, they haven’t had price increases. Almost all of the Japanese companies have had two or three small price increases so far. They’ve sort of been forced into it.”
Among Detroit’s auto manufacturers, Chrysler’s car sales rose 15.0% in May, Ford’s sales increased 14.6% and GM’s sales rose 12.1%. GM announced that May was its best monthly selling period since September, 1986.
Domestically produced autos by Honda and Toyota posted favorable sales in May. Sales of Honda’s U.S.-made Civics and Accords rose 33.8%, while sales of Toyota’s U.S.-made Corolla increased 14.3%.
Of the auto companies that produce autos on U.S. soil, only Nissan and Volkswagen showed sales declines. Nissan’s domestic car sales dropped 34.5%, and Volkswagen’s sales of U.S.-made vehicles plummeted 41.9%.
In the import market, Nissan’s sales rose 15.6%, while Toyota announced a 14.8% increase in sales, and Honda’s sales suffered a drop of 14.6%.
Mazda showed the strongest gain in imported auto sales, with an increase of 33.9%, from the year-ago period.
Hyundai made an impressive showing with an 8.4% increase in sales, further establishing itself as the No. 4 automotive importer in the United States, right behind Honda, Toyota, and Nissan. Sales of imported VW’s dropped 15.1%, along with sales of Subarus, which fell 21.8%, and sales of Volvos, which dropped 18.6%.
AUTO SALES
% May 1988 change GM 341,896 +12.1 Ford 206,615 +14.6 Chrysler 96,420 +15.0 Honda US 34,801 +33.8 Nissan US 9,772 -34.5 VW US* 4,564 -41.9 Toyota US 5,100 +14.3 Mazda US 2,819 -- Domestic 701,987 +12.8 Toyota Imp. 57,917 +14.8 Nissan Imp. 29,752 +15.6 Honda Imp. 30,649 -14.6 Mazda 20,263 +33.9 Subaru 12,691 -21.8 VW Imp. 12,906 -15.1 Volvo 8,278 -18.6 Hyundai 24,269 +8.4 Mitsubishi 6,415 +6.1 Others* 64,860 +8.1 Imports* 268,000 +4.2 Total US 969,987 +10.3
