Most major automakers reported sales declines in April as the industry continued to cool off from a record pace set in 2016.
Edmunds.com projected an overall sales slump of 6%, while Cox Automotive predicted a decline of 3.6%.
Still, shoppers bought new vehicles at a healthy clip, with economic conditions remaining strong. Recent increases in interest rates have not been enough to scare off consumers, Cox Automotive chief economist Charlie Chesbrough said.
“There’s very few concerns out there that we can see right now that (are) going to impact vehicle buying,” he said.
An industry-wide shift from passenger cars to crossovers, sport-utility vehicles and pickup trucks continued last month.
Ford has announced that it would discontinue the Fusion, Taurus and Fiesta cars within a few years. General Motors says it plans to scale back production of the Cruze compact car. It is also rumored to be considering killing the Impala and Sonic sedans.
“We’re seeing the same trend we’ve seen over and over — utilities doing far better than cars,” Autotrader analyst Michelle Krebs said. “I’m sure we’re going to see more pruning of car lines going forward.”
Despite the setbacks for the car business, automakers are flourishing overall because bigger vehicles are more profitable and more popular.
In the biggest surprise of the month, Japanese automaker Nissan reported a stunning sales decline of 28%. The results indicate that Nissan is slashing its sales to fleet customers such as daily rental companies, which are less profitable than sales to individuals, analysts said.
After Nissan resale values suffered, “they’ve clearly embarked on a new strategy,” Krebs said.
Nissan’s new CEO, Hiroto Saikawa, had said in January that he would prioritize “quality” sales.
Even the Nissan Rogue crossover, among the industry’s hottest sellers in recent months, took a step back, with sales down 14.8% to 23,331.
April marked the first month that Detroit-based GM did not report its monthly sales figures. The company said it would focus more on long-term results, choosing to report sales on a quarterly basis instead.
But other automakers continued releasing monthly figures.
Ford’s struggles continued as sales declined 4.7%. The company’s F-series pickup trucks outsold all of its SUVs — 73,104 to 69,640. Krebs said Ford badly needs forthcoming overhauls of the Explorer and Escape SUVs.
Fiat Chrysler’s red-hot Jeep brand led the company to a 4.5% overall sales increase. Jeep was up 20% as the redesigned Wrangler thrives.
“Jeep’s very much back in the game” after a “very painful transition year” last year, when the brand was awaiting new models, Krebs said.
Toyota’s overall sales slipped 4.7%. The automaker’s passenger cars struggled, recording a 12.7% decline. But its crossovers, SUVs and pickups collectively rose 1.6%.
Honda’s sales declined 9.2% as the company’s decision to limit discounts took a toll on overall sales, although it should help preserve resale values.
Volkswagen’s main brand posted a 4.5% sales increase, benefiting from the Atlas and Tiguan SUVs.
Subaru pulled off its best April ever, almost entirely because of a popular redesign of the Crosstrek.
Here’s how the major car companies fared in the U.S. in April, compared with a year earlier:
General Motors
Edmunds estimate: -2.8%
Cox Automotive estimate: 0.2%
Actual results: GM announced in April that it would no longer release monthly sales figures, marking a deviation from the standard industry practice. It will instead release sales figures on a quarterly basis.
Ford Motor
Edmunds estimate: -4.7%
Cox Automotive estimate: -7.2%
Actual results: -4.7%
The Dearborn, Mich.-based automaker sold 204,651 U.S. vehicles in April.
The Ford brand was down 4.3%, while the Lincoln luxury brand slumped 12.1%.
Passenger car sales plunged 15%, while sales of crossovers and SUVs fell 4.6%. Truck and van sales edged up 0.9%.
All three cars the company plans to discontinue fared poorly for the month. The Fusion, Taurus and Fiesta declined 22.9%, 18.3% and 5.3%, respectively.
The F-series pickup lineup, which is the best-selling model in the U.S., was a bright spot. It was up 3.5% to 71,104 units, outselling all Ford SUVs combined.
Fiat Chrysler Automobiles
Edmunds estimate: -3.7%
Cox Automotive estimate: -0.7%
Actual results: 4.5%
Fiat Chrysler sold 184,149 vehicles in an unexpected sales increase.
The company’s Jeep brand continues to lead the way, accounting for nearly 45% of total sales. Jeep sales jumped 20%, fueled by strong performances by the Wrangler, Cherokee and Compass.
“Jeep’s very much back in the game” after a “very painful transition year” last year, when the brand was awaiting new models, Krebs said.
But the Ram, Chrysler and Fiat brands were down 9%, 18% and 44.7%, respectively. Dodge rose 3.9%.
Toyota
Edmunds estimate: -7.2%
Cox Automotive estimate: -3.9%
Actual results: -4.7%
Toyota sold 192,348 vehicles in the U.S. in April.
The company’s namesake Toyota brand posted a 5.1% sales decline, while the Lexus luxury division was down 2.1%.
The automaker’s passenger cars struggled, recording a 12.7% decline. But its crossovers, SUVs and pickups collectively rose 1.6%.
The Tacoma mid-size truck was a bright spot, enjoying a 10.6% increase.
Nissan
Edmunds estimate: -10.6%
Cox Automotive estimate: -6.6%
Actual results: -28.1%
Nissan sales plunged far worse than analyst expectations as the company sold only 87,764 units in the U.S. in April.
The namesake Nissan brand suffered a 29.1% decline, while the luxury Infiniti brand fell 17%.
Even the Nissan Rogue crossover, the company’s shining star in recent months, declined 14.8% to 23,331.
“April was an extremely challenging month with intense competition in the U.S. market,” Nissan said in a statement. “Reduced retail sales along with a pullback on fleet volume contributed to lower performance from the previous year. We expect the situation to improve in the coming months as more new vehicles such as Nissan KICKS and the all-new Altima come into the pipeline.”
Honda
Edmunds estimate: -8.3%
Cox Automotive estimate: -6.1%
Actual results: -9.2%
Honda sold 125,701 units for the month. The company’s namesake Honda brand declined 8.4%, while its Acura luxury lineup slipped 15.9%.
The company’s critically acclaimed and recently redesigned Accord sedan fell 19.3%. Experts said the company has been reluctant to discount the car for fear of hurting its resale value. But that has undermined sales.
Hyundai-Kia
Edmunds estimate: -10.6%
Cox Automotive estimate: -5.5%
Actual results: Not yet available
Volkswagen Group
Edmunds estimate: -5.3% (does not include Porsche)
Cox Automotive estimate: 2.3%
Actual results: The Volkswagen brand rose 4.5% to 28,784 units, while Audi increased 2.1%.
VW’s SUVs, the Atlas and Tiguan, accounted for nearly all of the brand’s increase.
For Audi, the A5 sedan enjoyed a sudden surge.
Subaru
Edmunds estimate: (Not provided)
Cox Automotive estimate: -0.7%
Actual results: 1.5%
The Japanese automotive brand had its best-ever April.
The entire increase was attributable to the Crosstrek, which soared 69.9% to 12,266 units. It was the only Subaru model to record an uptick in April.
