Led by a huge sales increase in sales of trucks, SUVs and crossover vehicles, new car sales are booming to their best numbers in years. The big three are all reporting healthy sales in addition to import brands doing well as well. 1.6 million cars sold in May topped all expectations by industry analysts, surprising all expectations. Even a foreign brand like South Korea’s Hyundai reported their biggest sales month ever for their car brand on May, surprising their own industry expectations as well.
Despite some bad news regarding vehicle recalls, GM led the way with 284,694 vehicle sales, up 12.6%. Ford was #2 at 254,084 units with a 3% sales increase over April, and Toyoya came in a strong third at 243,236 units or a 17% increase over April. Fiat’s Chrysler did well with a 16.7 sales increase and sales of 194,421 units. Japanese carmakers Honda had a 9% increase and sold 152,603 units, while Nissan posted a strong 18.8% increase or 135, 934 units. South Korean Hyundai-Kia posted a healthy 8.5% increase and 130,994 units.
American consumers are surprisingly opening up their wallets for these higher priced durable goods right now, spending an average of over $32,000 for cars or trucks these days, up around $650 from last year. As high fuel prices and high food prices chip away at the buying power of some consumers, other consumers find the money to buy new cars as their second biggest purchase next to buying a home.