According to an analysis by highly regarded car research firm Kelley Blue Book (KBB), sales of Fiat Chrysler Automobiles N.V. (NYSE: FCAU) sharply bested the improvement of the U.S. market as a whole in July. The forecast is for sales of all Fiat Chrysler brands together to rise 4.4% to 175,000.
Sales of the industry as a whole in the United States, according to KBB, will move higher by 2.6% to 1,470,000. Fiat Chrysler’s market share is forecast to rise from 11.7% in the same month last year to 11.9%. The company’s brands include Chrysler, Dodge, Fiat, Jeep and Ram.
Alec Gutierrez, KBB senior analyst, wrote that one brand will be the primary engine in carrying the Italian/American company’s improvement:
“Fiat Chrysler Automobiles should extend its sales gain streak to 64 consecutive months with expected growth of 4.4 percent, almost entirely on the momentum of the Jeep brand,” said Gutierrez. “Jeep has set monthly records for the past 20 months, and Jeep has grown nearly 40 percent of Fiat Chrysler’s U.S. sales numbers. With the Cherokee more popular than ever, and the increasing availability of the new Renegade, July should be another month of double-digit growth for Jeep.”
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Fiat Chrysler’s success will allow it to beat Honda Motor Co. Ltd. (NYSE: HMC), traditionally one of the best-selling brands. The Japanese car company’s sales are expected to move up 2.3% to 139,000. Honda offers its flagship brand and luxury brand Acura.
The three best-selling car companies in America are also expected to lag Fiat Chrysler’s rate of expansion. General Motors Co. (NYSE: GM) sales are expected to rise 0.7% to 258,000. GM’s brands include Buick, Cadillac, Chevrolet and GMC. Toyota Motor Corp.’s (NYSE: TM) sales are expected to fall 0.4% to 215,000. Its brands include Lexus, Scion and Toyota. Ford Motor Co. (NYSE: F), parent of the Ford and Lincoln brands, is expected to post an improvement of 0.8% to 214,000.
Despite years of growth, the improvement in the American car market has not been exhausted:
New-vehicle sales are expected to increase 2.6 percent year-over-year to a total of 1.47 million units in July 2015, resulting in an estimated 17.1 million seasonally adjusted annual rate (SAAR).
“As the industry settles into the summer selling season, new-car sales are expected to remain consistent with last month’s numbers, representing modest and slowing growth versus last year,” said Alec Gutierrez, senior analyst for Kelley Blue Book. “Sales in the first half of the year totaled 8.5 million units, a year-over-year improvement of 4.4 percent and the highest first-half volume since 2005. Total sales in 2015 are projected to hit 17.1 million units overall, a 3.6 percent year-over-year increase and the highest industry total since 2001.”
At some point, every American driver will have a relatively new car. Industry sales may not stop growing until then.
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