By Nick Carey
DETROIT (Reuters) – Major automakers on Tuesday posted lower U.S. new vehicle sales in April as consumer demand continued to weaken and competition intensified following a lengthy boom for the industry.
Auto sales have been on a bit of a roller coaster ride this year, with a weak performance in February followed by a jump in sales for some automakers in March.
Ford Motor Co
For years, U.S. consumers have been shifting away from traditional passenger cars in favor of larger and more comfortable pickup trucks, SUVs and crossovers.
But the number of new models vying for a share of that market is growing faster than demand, threatening the fat profits automakers have enjoyed.
“That is a very competitive part of the market … with so many new entries,” Ford’s U.S. sales chief Mark LaNeve said of the SUV segment on a conference call with analysts and reporters.
Last year, U.S. auto sales fell 2 percent after hitting a record high of 17.55 million units in 2016. Sales are expected to fall further in 2018 as higher interest rates push up monthly car payments. Also, millions of nearly new vehicles will return to the market this year after coming off lease, providing a lower-cost alternative for consumers.
“We believe the industry continues to operate at a very healthy level,” Ford’s LaNeve said. “With a plateauing market, you are going to get some bumpiness.”
Nissan Motor Co Ltd’s <7201.T> sales hit quite a bump, plunging 28 percent in April. The Japanese automaker’s passenger car sales dropped nearly 35 percent and SUV and truck sales were down 23.1 percent. Even sales of the company’s popular SUV crossover model Rogue were down almost 15 percent.
“April was an extremely challenging month with intense competition in the U.S. market,” Nissan said in a statement. The company said declining retail sales and a “pullback on fleet volume contributed to lower performance.”
Automotive research firm Kelley Blue Book (KBB) said the estimated average transaction price for vehicles was $35,411 in April 2018, up 2 percent versus April 2017.
Despite rising fuel prices, KBB said prices rose more for SUV models than cars.
No. 1 U.S. automaker General Motors Co
Ford said on Tuesday it will continue to post monthly sales.
Fiat Chrysler Automobiles NV (FCA)
FCA’s popular Jeep brand hit a record for April. But sales of FCA’s Ram pickup truck were down 9 percent, though retail sales of the lucrative truck were up 3 percent.
FCA said last week when it reported first-quarter results that it had encountered problems ramping up production of the new RAM 1500 pick-up truck at its U.S. Sterling Heights plant.
Toyota Motor Corp <7203.T> posted a 4.7 percent decline in sales for April, with a 1.5 percent increase in SUV and pickup truck sales offset by a 12.7 percent drop in passenger car sales.
Sales of Toyota’s recently revamped flagship Camry sedan were down 5 percent.
Honda Motor Co Ltd <7267.T> said its April sales declined 9.2 percent, with a car sales off 14.4 percent and pickup trucks and SUVs down 3.9 percent.
Honda’s all-new version of its flagship Accord sedan plunged 19.3 percent.
In afternoon trading, Ford shares were off 0.3 percent, GM was down 41 cents or 1.1 percent at $36.33 and FCA was down 1.1 percent or 24 cents at $21.59.
(Reporting by Nick Carey; Editing by Nick Zieminski and Frances Kerry)