Vroom boom
Car sales spike, defy expectations
RECALL, schmecall. Despite its recent safety woes, General Motors reported a surprise acceleration in its June sales Tuesday.
The improvement reflected a better-than-expected month for the industry overall as major automakers, including Ford, Nissan and Chrysler, topped projections, too.
Analysts had widely been expecting a slowdown, given this June had one weekend less than last year.
“The car shopper continues to be resilient,” Jessica Caldwell, an analyst at Edmunds.com, told the Daily News.
“Credit is cheap, and there are so many leasing deals out there,” she said. “That, combined with new cars with new features, is driving sales.”
The industrywide annual sales rate climbed to almost 17 million in June, the fastest pace in nearly eight years, according to researcher Autodata.
GM has been battling criticism over its decadelong delay in recalling 2.6 million cars with faulty ignition switches linked to 13 deaths. On Monday, it added 8.5 million vehicles to its recall list, bringing its tally for the year to 29 million — a calendar-year record in the industry.
But GM’s sales edged up 1% in June, bucking the 6.3% drop analysts had expected, as consumers snapped up its redesigned SUVs like the Chevrolet Tahoe.
Ford’s sales fell 5.8%, but that still beat projections for a 6.6% drop.
Chrysler — owned by Italy’s Fiat — posted a 9.2% jump in sales thanks to a surge in demand for its minivans and pickups.
Nissan’s sales rose 5.3%, while Honda’s fell 5.8%.
Toyota’s 3.3% gain missed expectations.