By Angelo Young - The world’s “Big 8” automakers are releasing April U.S. monthly sales figures throughout the day Thursday.
Forecasts expect new-vehicle deliveries to touch around 1.4 million units, down from 1.53 million in March, which exceeded analysts’ forecast by about 400,000 autos as Americans flocked to showrooms in the last days of the month. Industry analysts foresee 9.1 percent growth last month compared to April 2013.
U.S. new auto sales data offer an early monthly glimpse into the state of U.S. consumer confidence and the health of this important manufacturing sector. The industry, including auto parts making but excluding dealerships, increased hiring by 34, 300 workers in the 12 months prior to March. Hiring has increased by about 11,000 workers since January.
The seasonally adjusted annualized rate (SAAR), a 12-month running estimate that reflects the health of the automotive market, is expected to come in at 16.2 million, down from the previous month’s 16.4 million but in line to meet the forecast for the year in the world’s second-largest automobile market after China.
March sales tend to be more robust than April’s because it is the end of the fiscal year in Japan, a month when its domestic automakers make their final push to meet or exceed annual sales targets. It’s also a month when a lot of Americans receive their income tax returns, which average about $800, or enough to encourage a down payment on a financed vehicle. The improved weather conditions toward the end of March also helped pump up sales volume. Most analysts expect April to benefit from this momentum, but the month is typically slower than the ones that precede and follow it.
The unusually harsh winter weather has been blamed for lower-than-expected sales at the start of the year. February’s SAAR hit 15.3 million, which missed the consensus estimate of about 15.5 million.
8:27 a.m. EDT: Chrysler Group LLC
The Auburn Hills, Michigan-based automaker announced Thursday its April sales volume increased 14 percent compared to the same month last year as consumers embraced the new Jeep Cherokee and the Ram pickup truck, which in a surprise twist outsold the Chevy Silverado from General Motors Co. NYSE:GM in March to be the second bestselling truck in this competitive vehicle segment.
“Strong consumer demand for our Jeep sport-utility vehicles and Ram pickup trucks continued in April as Chrysler Group extended its streak to 49-consecutive months of year-over-year sales gains,” Reid Bigland, head of U.S. sales, said.
“The spring selling season is heating up as our Jeep brand had its best monthly sales ever,” Bigland said in a statement announcing the new data. “Both of our minivans had a strong April and the Ram pickup truck had its best April sales ever.”
Chrysler’s April Winners
In addition to a strong start for the Jeep Cherokee mid-sized crossover, which went on sale in November, the Jeep Patriot compact crossover and Jeep Wrangler compact SUV set April sales records with 44 percent and 14 percent year-over year growth, respectively.
Ram sales increased 14 percent to 36,674, which represents about one in four of all Chrysler truck (including SUV and crossover) sales in April.
Deliveries of the Dodge Caravan, the most popular minivan in the U.S. market, increased 36 percent to 13,352.
Chrysler’s April Losers
The Fiat 500 city car sales fell 22 percent to 3,041 as Chrysler owner Fiat Spa (FIADF.PK) continued to experience lackluster U.S. demand for the Italian mini that’s manufactured at Chrysler’s plant in Toluca, Mexico.
The pre-2015 Chrysler 200 mid-sized car is experiencing the end of its product cycle as the newly revamped model starts to head to dealerships. The 66 percent decline in year-over-year sales reflects the transition.
Deliveries of the Dodge Avenger mid-sized sedan fell 32 percent to 7,324.