Scott Burgess/ The Detroit News
We're halfway there. June sales numbers have rolled in; they're up 7.1 percent compared with the same month last year, but what does all of it mean? We're starting to see some of the residual effects of the parts supply problems in Japan as some carmakers are having trouble getting all of the pieces needed from suppliers to build their cars =97 you need all of them.
And as carmakers close the book on the second quarter, some expectations were met, and others were not.
Here are the 10 things I think I know after going through the June sales figures, provided by AutoData Corp.
- We're driving through a tough economy.
You don't need me to tell you that the U.S. economy is still feeble at best. All the talk in the media of teetering on the financial abyss hasn't scared many people away from buying new cars and trucks. Even if people are holding off on a big purchase, many are buying vehicles. And why not? It's starting to look like the residual values on our cars are better than some of our homes. Through June, carmakers have sold 6.3 million vehicles; that's 12.8 percent better than last year. I still don't know if we'll pass 12 million units for the year, but these numbers provide a good start.
- Lincoln is lingering on the vine.
Ford Motor Co. has said its luxury brand, Lincoln, is getting an overhaul soon. By the numbers, it's not soon enough. Even with a sales spike of 16.5 percent in June, that number pulls down Ford's overall growth. The Ford badge saw sales jump 19.9 percent. In fact, Ford sold more Econoline vans, 7,952, than Lincoln sold vehicles, 7,361. Through June, Kia sold more compact Forte cars, 43,022, for the year than Lincoln has sold total vehicles, 42,003, during the same time frame.
- Nissan Leaf outperforming the Chevy Volt.
What's going on in Hamtramck? The birthplace of the Chevrolet Volt seems to be stuck in neutral, with a few hundred vehicles selling each month. In June, Chevy sold 561 Volts =97 and that number is sitting at
2,745 units for the year. Meanwhile, the Nissan Leaf is starting to take off, with 1,708 cars sold in June alone and 3,875 for the year.Some are blaming it on supply issues, much like the ones Japanese carmakers are facing. Hopefully, those can be resolved soon. Many promises were made on the hood of the Chevy Volt, and no one will remember the excuses for why those lofty goals were not reached; they'll only remember General Motors Co. not meeting them.
- Minivans might stall, but they'll start up again.
While I have never owned =97 and most likely never will own =97 a minivan, that doesn't stop me from believing these boxy utilitarian vehicles are still some of the most practical things with wheels. Consumers, however, don't seem to agree.
Minivan sales fell 7.7 percent in June and are up only 3.4 percent for the year. There has never been a better time to buy a minivan. The four top-selling models have been overhauled, and all of them are very good rides. The Dodge Caravan pulled ahead for the year, selling
56,970, while Toyota Sienna sales are up 27.5 percent through June, and it has moved into a solid second place for the year with 54,945 units. The Honda Odyssey is right on its liftgate with 52,968 minivans sold this year. Only the Chrysler Town & Country seems to be wavering, with its sales falling 29 percent in June compared with June last year and dropping 24.2 percent for the year.But don't count these vehicles out completely. I wouldn't be surprised if sales pick up and the entire segment pushes beyond 500,000 for the year. The new school year is right around the corner.
- A German offensive is a good thing for consumers.
Volkswagen Group of America is on fire.
Sales at VW are up 35.1 percent for the year, making this the best first half of a year since 2002. The compact Jetta, redesigned last year, had its best month in America =97 ever. Sales were up 88.3 percent. The new Passat is getting ready to roll out, and that's going to go gangbusters on the American public.
Meanwhile, Audi keeps humming along in Quattro drive, with sales up
16.9 percent for the month and 15.4 percent for the year. By the end of the year, it, too, will set another sales record in America, just like it did last year. Even VW's ultra-luxury brand Bentley saw sales jump 53.4 percent in June =97 though that was with just 178 total vehicles.Of course, before anyone unfurls a white flag, a little numerical perspective is needed with VW's growth. In June, VW sold a total of
38,696 cars and trucks. During the same month, GM sold 44,956 Chevy Silverado and GMC Sierra pickups.
- There's another juggernaut, one with Soul.
Hyundai Motor America and Kia Motors America have also been creating quite a wave. Hyundai has steadily grown with a full complement of excellent cars and crossovers. The compact Hyundai Elantra was the
10th-best selling vehicle in June, and the midsize Sonata was the 13th. The all-new subcompact Accent is on its way and likely will start stealing someone's market share in that segment as well.Kia continues to see its lineup chosen by more and more people. In June, sales were up 41.2 percent. And it's No. 1 selling vehicle? The hamster-driven Soul, with sales up 92 percent for the year =97 though it's the midsize Optima that has seen the largest percentage growth. Sales were up 572.9 percent for June and 134.3 percent for the year.
Hyundai sales have jumped 26.2 percent for the year, and Kia sales are up 44.1 percent for the year.
Combined, Hyundai/Kia sold 104,253 vehicles in June. That would make it the fourth-largest brand in America, a few thousand units behind Toyota, which, no doubt, is checking its rearview mirror a little more often.
- An American Top 10.
Yes, the devastation in Japan has held some vehicles back. There just aren't the parts available.
But following that logic would suggest car sales should be down for the month. But they're not.
What's happening now is American carmakers are building top-notch vehicles consumers are jumping into.
Eight of the top 10 vehicles sold in June belonged to Detroit's carmakers. The two top-selling cars were made by Chevrolet (the Cruze and the Malibu). Meanwhile, the top-selling small crossover was the Ford Escape, and the second-best selling compact car behind the Cruze was the Ford Focus.
Consumers now have a real choice when it comes to cars.
- Truck buyers are not worried about gasoline.
In 2008, the first time gas prices jumped to more than $4 in some places, pickup sales plummeted.
In June, we saw gas prices steadily fall =97 though they have risen recently. The full-size pickup market, however, just seems to be cruising along. Overall for the month, sales were up 8.8 percent. For the year, sales are up 11.8 percent.
One might think volatile gas prices would keep sales of these big trucks down. But that's just not the case. The pent-up demand is too much, and a lot of people need a truck. Try hauling a cement mixer in a Nissan Versa or towing a fishing boat with a Toyota Prius.
Pickups serve a real purpose and are driven by the hardest working group of people in America. Period. And of the six major pickups sold today, only one saw its sales fall for the month and year: the Toyota Tundra. The reason is easy to understand: the Tundra is not as good as the other pickups. This year, Toyota has sold 39,848 pickups. Ford sells that many in 31/2 weeks.
- Ford will be the No. 1 brand in 2011.
While we're six months away from the end of the year, it's already time to call which brand will hold the No. 1 spot. It's an easy call for me: Ford. Through June, Ford was the only brand to sell more than
1 million vehicles and is more than 100,000 units ahead of the No. 2 brand in America, Chevrolet. Toyota is a distant third at 724,778 units.
- A real Saab story.
Saab is hanging in there, despite all of the problems the Swedish carmaker seems to be having. Technically, sales are up 49.5 percent for the month and 155.3 percent for the year. At the same time, Saab sold a total of 323 vehicles in America =97 losing to Smart USA by seven vehicles in a race to irrelevance. Porsche sold more 911 Carrera/GT3s =97 at 497 cars =97 than Saab did vehicles.
I've always liked the quirkiness of Saab and the Ikea-ness of its vehicles. But it doesn't appear anyone else does. My guess: Saab is going to win this race with Smart. But there won't be any victory lap.
Patrick