RIDING HIGH

Auto industry enjoys big month

THE AUTO industry put April’s disappointing sales in the rearview mirror.

Nearly all major carmakers on Monday reported better-than-expected deliveries for May, helping overall sales rebound to an annualized rate of 17.8 million vehicles after April’s yearly sales pace of about 16.5 million, according to research firm Autodata.

It was also the fastest annual pace in nearly a decade as a combination of Memorial Day promotions, consumers flush with tax refund money, easier access to loans and gas prices at their lowest levels in years as summer car vacations loom, helped push May auto sales up by 1.6% to 1.64 million, according to Autodata. Analysts had expected a decline of about 1.1%.

“It’s unrealistic to think sales can sustain at May levels since they are at a near 10-year high,” Jessica Caldwell, director of industry analysis for car shopping website Edmunds.com, told the Daily News.

“But they will likely continue to be relatively strong because of market factors like low interest rates, eased lending policies and compelling deals.”

Buoyed by affordable gas, buyers flocked to showrooms for larger vehicles. Sales of SUVs, pickups and minivans climbed 6.8% in May, helping offset a nearly 4% drop in car sales.

General Motors beat expectations, with sales rising 3% against expectations for a 0.1% increase, on a 23% rise in the Jeep Cherokee SUV and an 11% increase in the Chevrolet Silverado.

Fiat Chrysler sales were up 4%, topping forecasts of 2.6%, as its Ram pickup rose 8%.

Ford reported a 1.3% dip for the month, though it was better than an expected 3% drop. Ford said the revamping of its best-selling F-150 pickup to an all-aluminum body affected inventory, with F-150 sales down 10%.

Analysts see auto sales staying strong down the road.

“The beginning of June could prove to be a bit slow, but I would anticipate the pace to pick up through the summer as we move toward the model year selldown,” Caldwell said.

“Memorial Day showed that consumers are responding to deal messaging, so I would expect the similar moves from the automakers for the Fourth of July and Labor Day weekends.”