US Auto Sales Slides in May

In May, the U.S. auto industry showed a decline in sales of sedans and light-trucks due to weak demands. Most auto companies reported sales decline in May, which includes Toyota (NYSE: TM), General Motor (NYSE: GM), Ford (NYSE: F), Honda (NYSE: HMC) and Nissan. Fiat Chrysler was the only auto company who did not report any sales decline.

General Motors, the largest U.S. automaker, reported 18 percent decline in the month of May and an estimated pace at 17 million, below the same period a year earlier. The stock was down more than 3 percent on Wednesday morning, compared with its worst day since Jan. 7 when it lost 4.09 percent.

Ford Motor sales fell 5.9 percent, even as sales for the best-selling vehicle in the U.S. market, the F-Series pickup, rose 9 percent. Its light vehicles dropped 6.1% to 234,748 for the month. Shares of Ford were down more than 3 percent, also tracking for its worst day since Apr. 29 when they lost 3.76 percent.

Toyota reported that its sales decreased 9.6 percent compared with a year earlier. Honda posted nearly 5% sales decline and Nissan sales slipped 1%.

Fiat Chrysler Automobiles sales rose 1 percent to 204,452 new vehicles, which is the highest May sales in 11 years, from a year earlier on a 14 percent gain for its Jeep SUV brand. FCA was the only major automaker in the U.S. market for which analysts had not expected a sales decline. FCA’s Ram pickup truck sales fell 3 percent in May but are still up 8 percent for this year.

Forty economists polled by Thomson Reuters expect on average a seasonally adjusted selling will decrease to 17.3 million vehicles for May, compared with 17.8 million one year ago. Researcher forecast a 6.5% industrywide decline based on a straight year-over-year comparison. But the firm had expected sales volume to increase 1.3%, adjusting for the disparity in selling days.

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