By Bernie Woodall
DETROIT (Reuters) - Strong demand for sport utility vehicles and trucks in June helped General Motors Co (N:GM) and Ford Motor Co (N:F) offset slowing demand for sedans by allowing them to raise prices on their trucks.
GM and Ford said on Wednesday increases in the average transaction prices for their vehicles, particularly trucks and SUVs, outpaced sales volume growth that fell short of Wall Street expectations. Ford, for example, said prices for its F-series trucks rose 8 percent, or $3,600, while sales volume for the pickup truck line dropped 8.9 percent in June.
U.S. June auto industry sales rose to about 1.47 million vehicles, up 3.9 percent from a year ago, according to figures compiled by WardsAuto.
GM's sales fell 3 percent last month as the company's small cars slid from year-ago figures, including a 13 percent drop in Cruze compact sales. Sales of GM's large SUVs also fell, reflecting fewer sales to fleets, a company spokesman said. But GM said average transaction prices for all vehicles rose almost $1,000 from a year earlier.
GM said analysts may have not factored into their expectations the automaker's statement a month ago that its sales to rental agencies would fall by 20,000 vehicles in June.
Earlier this week, car shopping and industry consultant TrueCar Inc (O:TRUE) said June would bring in about $48 billion of net revenue, up 7.3 percent from a year ago. TrueCar said the sharpest rises in net revenue from a year ago would come from Nissan Motor Co (T:7201) and Fiat Chrysler Automobiles (N:FCAU) (MI:FCHA).
GM shares were down 1.1 percent at $32.97 late on Wednesday afternoon. Ford shares were down 0.4 percent at $14.95.
The National Automobile Dealers Association this week raised its forecast for 2015 U.S. auto sales to 17.2 million vehicles from 16.9 million. It would be the sixth straight year of solid gains since the recession.
While Ford's sales rose only 2 percent, it showed the largest increase in the market in the average price of its vehicles, industry consultant Kelley Blue Book said.
Ford's SUV sales rose 10 percent, but car sales fell 3.5 percent.
Toyota, No. 3 in the U.S market by sales, posted June sales of nearly 210,000 vehicles, up 4 percent, roughly in line with expectations.
Honda Motor Co (T:7267) showed sales of about 134,000 vehicles, up 4 percent from a year ago, on strong SUV sales.
Fiat Chrysler U.S. June auto sales increased 8 percent from a year ago, boosted by the continued strength of its Jeep SUV brand.
Nissan U.S. sales rose 13 percent, led by a 54 percent increase in its popular Rogue small SUV.
Corporate teammates Hyundai Motor Co (KS:005380) and Kia Motors Corp (KS:000270) collectively sold 121,639 vehicles in June, up 3 percent from a year ago. Hyundai sales were flat. Kia sales rose 3.6 percent.