As Ford Car Sales Decline in July, Jeep Sales Rise
The overall number of new vehicles sold is on the decline.
July reports from several major automakers, such as Ford and Fiat Chrysler, show that sales of new vehicles are on the decline. Sales of passenger cars continue to drop, and many car shoppers opt for used vehicles instead of brand new ones.
Despite these reports, the automotive industry appears to still be in a healthy state. IHS Markit analysts predict that the number of new vehicles sold should reach 17 million, according to USA TODAY.
For July, the sales of pickup trucks, SUVs, and crossovers significantly outnumbered that of passenger vehicles which consist of sedans, coupes, hatchbacks, and convertibles. Erich Merkle, a sales analyst for Ford, said roughly half of the vehicle sold in the U.S in July were SUVs. The massive increase in SUV sales can be attributed to an increased demand for vehicles with more room as well as a decrease in the price of gasoline.
Some companies, such as Volkswagen and Subaru, show an increase in sales due partially to their new SUV models. Both of these companies are known for smaller vehicles, but have taken advantage of the increasing popularity of larger ones.
Usually, when vehicles are not selling as well, an attempt at boosting sales is made through discounts. However, companies now allow the number of passenger cars to decline as they choose profits over sales numbers.
Ford already announced plans to have many of its passenger vehicle models discontinued. These plans have been even further cemented by the continued decrease in sales of passenger vehicles. In July, the sale of passenger vehicles dropped a massive 27.7 percent, which has contributed to the 3.1 percent decrease in sales overall for that month.
Fiat Chrysler Automobiles has been seeing an increase in sales. The company reported a 5.9 percent increase in sales for their popular Jeep SUV brand in July. The Jeep Cherokee alone saw a massive increase of 71 percent in sales for that month, the company reported.