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GM posted a sales increase in June despite recent callbacks.

Car manufacturers beat expectations in June

Posted on 8/8/14 1:36:45 PM

Erich Merkle, a sales analyst with Ford, didn't seem too worried that his company posted lower sales in June compared to the year prior.

"The industry seems quite healthy compared to both May and year ago levels," Merkle said.

Automotive sales topped expectations in June as Chrysler, Hyundai, Nissan and Toyota paced the way with solid gains compared to the same month a year prior. General Motors also notched a small increase, though not as much as the four previously mentioned.

Meanwhile, June sales for Ford fell 5.8 percent from June 2013, despite the fact that the Fusion posted its best June sales in company history. Consumers bought more than 27,000 Fusions, up 14 percent from the same month a year ago.

The industry was also buoyed by the success of the other major car manufacturers. Auto information company, said vehicle sales were solid despite the fact that car dealers had two less days to sell cars compared to June 2013. Certain states put a limit on which days autos can be sold.

"Sales in the first half of 2014 indicate a steadily recovering industry, and we expect this pace to increase as we move into the second part of the year," said Bill Fay, Toyota division group vice president and general manager, in a statement. "In June, Camry and Corolla posted double-digit gains as passenger cars showed renewed strength industry-wide."

Toyota sold 201,714 units in the U.S. last month, a 3.3 percent increase from June 2013. Toyota's sales total includes its Lexus and Scion brand.

Overall rate of sales
The most recent sales forecast states that automakers are on pace to sell around 16.2 million vehicles throughout the country in 2014. If that prediction comes to fruition, it would be the most vehicles sold in a single year since 2006.

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The word on General Motors
General Motors somehow managed to increase its June sales by one percent from a year prior despite having to recall 26 million vehicles so far in 2014. That's more cars recalled in the first six months of the year than all of 2013 for the entire automotive sector, according to the Los Angeles Times.

"General Motors once again proves its amazing resiliency," said Michelle Krebs, an analyst with, a car shopping company. "Better-than-expected sales in June were reported against a backdrop of ugly news, from the unveiling of the victims' compensation plan to another massive recall."

General Motors has been forced to recall cars - on a wide range of models - with faulty ignition switches. The recalls have been linked to 16 deaths and dozens of crashes. The car manufacturer recently announced details of a compensation plan that will pay millions of dollars to the victims and their families.

Sales roundup
The Chrysler Group had a nine percent gain in sales to 171,086 units, its best June sales since 2007 behind strong months from most of its brands.

Its Jeep, Dodge, Ram Truck and Fiat brands all notched year-over-year sales gains in June. Jeep was particularly strong, posting a 28 percent increase and its best-ever sales in the month of June.
Thomas King, vice president of J.D. Power, said that his company expects robust sales to continue through the end of the year.

Author: Marc Vasquez