The Detroit Three automakers saw mixed results in the U.S. in August, as industry-wide automotive sales appear to be softening.
DETROIT - The Detroit Three automakers saw mixed results in the U.S. in August, as industry-wide automotive sales appear to be softening.
It's part of what some industry analysts see as a possible plateau in sales, which have been at record levels.
"After more than six years of steady growth, it's clear the auto industry has finally peaked,' said Karl Brauer, senior analyst at Kelley Blue Book.
Brauer added that almost every large automaker is expected to post a decline for the month, even as they ramp up incentives and as truck and SUV sales remain strong.
"While an end to the growth curve was inevitable, having it peak above 17 million units leaves little room for complaining among automotive CEOs," Brauer said, noting the estimated seasonally adjusted annual rate of sales, or SAAR. Most analysts forecast the SAAR for August at 17.2 million units, according to Bloomberg.
Here's how the Detroit Three fared last month:
General Motors
General Motors' total sales in the U.S. were down 5 percent to 256,429 units. Retail sales were off at the same rate, with 212,915 units sold.
On the month, Chevrolet's sales were down 4 percent to 175,965 units, GMC's dropped 14 percent to 42,440 units and Buick's were off 3 percent to 21,678 units.
Cadillac saw a 4 percent rise to 16,346 units last month, aided by the CT6 and XT5 models, which were not on sale in the year-ago period.
Through the first eight months of the year, GM's total sales are down 4 percent to 1,962,602 units.
"Despite tighter dealer inventories, we had a solid retail performance in August led by Chevrolet, which gained retail share in eight different segments," Kurt McNeil, GM's U.S. vice president of sales operations, said in a release Thursday. "Our retail strength is reflected in our record ATPs in August, which were up more than $1,600 from last month and nearly $5,800 above the industry average while our incentive spending was below the industry average and well below our domestic competitors."
Ford
Ford's total sales dropped 8 percent to 214,482 units in August. Ford-brand vehicles fell 9 percent to 205,239 units, while Lincoln vehicles were up 7 percent to 9,243 units.
Sales of Ford-brand cars declined 27 percent to 49,069 units, Ford SUVs slipped 2 percent to 67,798 units, and Ford trucks slid 2 percent to 88,372 units. Ford's best-selling F-Series trucks decreased 6 percent to 66,946 units.
Lincoln cars fell 1 percent to 3,079 units, while sales of Lincoln SUVs climbed 12 percent to 6,164 units.
"Strong sales of high-end Lincoln vehicles and Ford SUVs also helped us continue outpacing the industry in average transaction pricing, which increased $1,200 versus a year ago," Mark LaNeve, Ford vice president of U.S. marketing, sales and service, said in a release. "Vans continue to be a bright spot for Ford - a consistent growth story for us this year."
Through the first eight months of 2016, the Dearborn automaker's total vehicle sales are up 2 percent to 1,784,009 units.
FCA
Jeep continues to lead Fiat Chrysler Automobiles' sales in the U.S. In August, Jeep sales were up 12 percent to 86,468 units, with every model posting an increase save for the Wrangler, which curiously fell 16 percent to 15,290 units.
Chrysler vehicle sales plummeted 22 percent, as 7,459 units of Pacifica sales that didn't exist a year ago were not enough to offset drops of 66 percent for the 200 and of 75 percent for the Town & Country.
Sales of Dodge vehicles were up 5 percent to 44,340 units, led by the Journey, which posted a 40 percent rise. Sales of Ram trucks were up 2 percent to 44,426 units.
Truck and SUV sales remain strong, car sales still soft
Analysts for Autorader and KBB noted in a conference call Thursday that there continues to be strong demand for trucks, and very weak demand for cars in the U.S. Non-luxury car sales are down 11 percent on the year so far, while SUVs and crossovers are up about 9 percent.
Michelle Krebs, senior analyst for Autotrader, said a second consecutive year of record auto sales in the U.S. now appears less likely. It will depend on what the end of the year looks like and what automakers do, if anything, to boost sales, she said.
Asked whether slowing demand in general could cause automakers to cut some production, Krebs said it depends on how disciplined they are. She said they could cut production or just roll out bigger incentives to move inventory, or do a combination of both. "I wouldn't rule those out," she said.