October sales data has brought smiles to most car and truck OEMs in the US. Despite traditionally being one of the slowest months in the year for new vehicle sales, October this year was the eighth month in 2014 in which monthly sales have pushed the seasonally adjusted annualised selling rate (SAAR) to beyond 16 million units.
Although Ford (-2.8% year-on-year), Mercedes-Benz (-4.9%), Mazda (-4.8%), Hyundai (-6.5%) and Jaguar (-33.5%) reported year-on-year sales declines, most other passenger car OEMs reported growth in the strongest October in terms of light vehicle sales since 2004. The US light vehicle market grew 6.1% to 1.28 million units, taking year-to-date sales to 13.7 million units and the SAAR to 16.46 million.
The year’s record number of recalls has failed to dent buyers’ interest in new cars, as is underlined especially well by the ongoing success at GM, which reported its best October for seven years
Especially impressive double-digit growth was reported by Nissan (up 14.9% y-o-y), Kia (12.4%) and Audi (16.5%) and Chrysler (17.5%), with Subaru and Mitsubishi each reporting growth of 24.7%. Ram brand sales were up 35.9% to 42,499 units, while Jeep sales rose 51.8% and Maserati grew by 105%.
All-new products and falling fuel prices are drawing prospective buyers back into dealerships, and those buyers are considering larger vehicles that they may previously have feared would be too costly to run. Interestingly, the year’s record number of recalls has failed to dent buyers’ interest in new cars, as is underlined especially well by the ongoing success at GM, which reported its best October for seven years (up 0.2% y-o-y).
And it’s not only the car industry that is enjoying the latest monthly US sales data – trucking industry analysts are stunned by the current run of success in heavy duty product. October’s Class 6-8 total came in at 60,307 units, with the Class 8 total of 46,200 units making October 2014 the second-highest ever monthly Class 8 sales, a year-on-year increase of 76.5%. Announcing its Q3 results, truck supplier Commercial Vehicle Group said it believes that “increased production levels in North American heavy-duty truck OEMs are sustainable through the remainder of the year. We estimate that 2014 North American Class 8 truck production will be in the range of 290,000 – 300,000 units.”
Although its passenger car sales were down in October, Daimler is celebrating a record month of Class 6-8 sales; its local subsidiary, DTNA, reported 31,304 orders, which it says is the highest number of incoming orders in a month for a US truck manufacturer.
October’s Class 6-8 total came in at 60,307 units, with the Class 8 total of 46,200 units making October 2014 the second-highest ever monthly Class 8 sales, a year-on-year increase of 76.5%
Of course, a strong new vehicle market is just what the suppliers want, and need. The latest member survey conducted by the Troy, Michigan-based Original Equipment Suppliers Association (OESA) shows a positive outlook for automotive suppliers. This was echoed by Magna which, when reporting its latest results, attributed its 47% rise in Q3 profits to strong North American vehicle demand.
While a resurgence of passenger car sales is eagerly welcomed (although there should be some concern about rising dealer inventories), the HD truck OEMs, dealers and fleet buyers should pause for a moment from their celebrations to ask how long such continued growth in heavy truck sales can last.
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Martin Kahl is Editor, Automotive World.
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