When GM announced it was opening its employee discount programme to everyone in the US, it was obvious the May numbers weren’t going to be encouraging.
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Adjusted for this year’s shorter sales month, the General came up 5.4% shy of its 2004 mark as continuing weakness in SUV sales dragged down impressive performances by Chevrolet and Cadillac.
With sales of GM’s mid- and full-size SUVs down 22.2% for the first five months of 2005, it is becoming a subject of debate over how wise it is for GM to place so much hope in its GMT800 series full-size trucks coming in 2006.
Ward’s reported just short of 1.5 million light vehicle sales for May for a SAAR of 16.67 million units, well off the 17.71 million pace recorded last May. Two fewer selling days softened a nearly 8% decline in volume to a more palatable 0.3% drop in daily sales rate (DSR).
In year-to-date sales, the April surplus has disappeared, replaced by a 0.9% deficit.
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By GlobalDataMay was the 12th consecutive month in which Ford missed its numbers. Sales of its domestic car lines improved 4.3% but a 13.9% dive in SUV sales left the blue oval in the red again.
The LR3 (Discovery outside the US) gave Land Rover sales a 20% volume bump, but once-robust sales of Volvo cars are now 4.1% behind the first five months of 2004. Even with a new V8, demand for the XC90 SUV was down 11.8% in May.
Chrysler’s DSR-adjusted May numbers gave Auburn Hills another cheery month as its flagship brand posted an all-time record. Chrysler brand sales were up 5.6% with gains posted by every current model. The new Grand Cherokee had a 9% gain over May 2004 and Dodge’s Caravan beat the combined sales of every passenger minivan from Ford and GM.
Nissan set its own all-time record with the Titan and Armada gaining market share and Altima sales up 25.9%.
Infiniti was the only upscale Japanese marque to miss setting a May record.
Acura’s numbers were aided by a 225% improvement in sales of the RL and Lexus got a boost from its redesigned GS-series cars and RX330.
Sales of premium vehicles were up 5.35% in May. Porsche set an all-time sales record and demand for BMW’s new 3-series is outstripping supply.
Toyota sales were up 7.6% with the help of the new Avalon and a nice increase in Tundra sales, but things weren’t as rosy at Honda. The Ridgeline has made a good start, but the cars, once Honda’s strong suit, are hurting the totals. The Accord, which used to regularly swap places with the Camry as America’s favourite car, is now well out of the running and Civic YTD sales are down 13.8%.
American brands took a larger share of the market compared to April 2005, but lost 1.2% compared to last May. With petrol prices still a factor, cars and pickups claimed more of the May total, shares that came largely at the expense of SUVs.
However, it should be noted we are heading into the part of the year that is traditionally best for trucks, so the next few months bear careful watching.
Bill Cawthon
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