Edmunds.com: June Puts Industry on Track for 16.4 Million Annual Sales
June 28, 2007

New vehicles sales for June (retail and fleet) are expected to be 1.55 million units, a 3.4 percent increase from June 2006, according to Edmunds.com. Automakers will announce sales on Tuesday.

“In order to understand the year-over-year comparisons of sales for each automaker this month, one must remember that last June was one of the best sales months of the year for some automakers, and was particularly disappointing for others,” observed Jesse Toprak, Edmunds.com’s executive director of Industry Analysis.

“This month, automakers seem to have achieved sales at more typical and sustainable levels rather than the dramatic highs and lows of last June,” he added.

This June had 27 selling days, one more than June 2006. When adjusted for this difference, sales decreased 0.5 percent from June 2006.

What's Hot, What's Not

While industry sales may be relatively flat this month, certain market segments appear to be thriving. Not surprisingly, the crossover segment is flourishing. Activity within the segment demonstrates how lots of new products can generate interest. And, the crossover is such a smart idea; the station wagon, minivan and SUV of this decade.

Traffic patterns on the Edmunds.com Web site suggest that the crossover segment is poised for robust growth in the next several weeks. Research of crossover vehicles was up 67 percent year over year, indicating a surge in the number of consumers who are likely to buy crossover vehicles within the next six weeks.

Another promising market segment may surprise some. “Despite high gas prices, research of large trucks was up 21 percent compared to June 2006. This can likely be attributed to the segment’s new products and increased incentives spending,” noted Edmunds.com analyst Leah Lesch.

“On the other hand, research of midsize and large SUVs declined 22 percent and 13 percent, respectively, indicating a drop in consumer demand and potentially sluggish sales in the coming weeks,” she added. “Automakers might boost incentives in those segments to attract buyers.”

The combined monthly U.S. market share for Chrysler, Ford and General Motors (GM) domestic nameplates is estimated to be 53.6 percent in June 2007, down from 57.4 percent in June 2006 and up from 52.8 percent in May 2007.

Company-by-Company Forecast

Edmunds.com predicts the following:

* Chrysler will sell 205,000 units in June 2007, up 10.0 percent compared to June 2006. This would result in a new-car market share of 13.2 percent for Chrysler in June 2007, up from 12.4 percent in June 2006 and up from 12.8 percent in May 2007.

* Ford will sell 244,000 units in June 2007, down 7.6 percent compared to June 2006. This would result in a market share of 15.8 percent of new-car sales in June 2007 for Ford, down from 17.7 percent in June 2006 and down from 16.1 percent in May 2007.

* GM will sell 381,000 units in June 2007, down 6.7 percent compared to June 2006. GM's market share is expected to be 24.6 percent of new-vehicle sales in June 2007, down from 27.3 percent in June 2006 and up from 23.9 percent in May 2007.

* Honda will sell 140,000 units in June 2007, up 10.7 percent from June 2006. Its market share is expected to be 9.1 percent in June 2007, up slightly from 8.4 percent in June 2006 and down slightly from 9.3 percent in May 2007.

* Nissan will sell 91,000 units in June 2007, up 20.8 percent from June 2006. Nissan's market share is expected to be 5.9 percent in June 2007, up from 5.0 percent in June 2006 and down slightly from 6.0 percent in May 2007.

* Toyota will sell 257,000 units in June 2007, up 15.4 percent from June 2006. Toyota's market share is expected to be 16.6 percent in June 2007, up from 14.9 percent in June 2006 and down from 17.3 percent from May 2007.

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