July was a month of mixed emotions for the U.S. auto industry. Despite an 8.9% increase in overall light vehicle sales from the same period last year, the economy is still not where it should be and dealerships haven’t been meeting projected summer sales. There was a definite disparity as certain brands fared better than others and unfortunately, Ford and G.M. were part of the latter, down -3.8% and -6.4% respectively, though still maintaining 32.4% of the total market share. Mazda, Mitsubishi, and Suzuki also had lower sales over last year.
On the flip side, the Japanese Big Three have been doing very well considering where they were this time last year, coping with the aftermath of the tsunami that hit Japan, leaving supply chains and logistics a mess for months. For July, Honda sales were up 45.3% from last year, Toyota was up 26.2%, and Nissan was up 16.2%. Although Toyota was the hardest hit by the tsunami which halted production of the Yaris and certain models under the Scion brand, Honda and Nissan did see their fair share of issues, and it is reassuring to see all three manufacturers back on their feet.
Small victories are always the most meaningful and they did come for Chrysler (up 12.6%), Hyundai (up 4.1%), Kia (up 5.6%) and Subaru (up 15.9%). The new 200 and 300 sedans as well as a reformed marketing campaign focusing on rebuilding Detroit from the bottom up has been working for Chrysler and it’s safe to say that the least among the American car makers is finally making a comeback.
Among the German brands, Audi and Volkswagen performed exceptionally well with sales increases of 28% and 27.3%. BMW was the only one to have a slight slump, with decrease of -0.5%.
The top 5 selling vehicles for July were the Ford F-series pickup (49,314 units), the Toyota Camry (29,913), Chevy Silverado (28,972), Honda Accord (28, 639), and the Nissan Altima (26,602). Receiving honorable mention in the top 20 are the Kia Optima which was up 96.6% from July 2011 and the Toyota Prius which was up 110.5%. The Optima has without a doubt been a shining star for Kia these last few months and these sales numbers are a testament to the fact that it has single-handedly changed America’s perception of the Korean automaker. Prius’s numbers seem to indicate that Americans are being receptive to Toyota’s introduction of the expanded Prius line which includes the V wagon, the C compact, as well as a plug in hybrid.
July has made it clear that things are still rocky in the auto industry and that the job market is going to be a deciding factor in whether 2012 ends on a high note or not. Despite this however, with all the key players still fighting for victory it’s obvious that things are about to get a lot more interesting and that this is truly anyone’s’ game.
Jibbin Abraham is an undergraduate student pursuing a degree in Business and Marketing at Binghamton University. He enjoys following the latest automotive trends and developments in the U.S. as well as abroad and spends his free time reading various auto websites and blogs. His ultimate goal is to pursue a career where he can mesh his passion for business and for cars.
