Auto Sales Surprise In June, GM Shares Reverse Latest Recall Slip

Samantha SharfForbes Staff

Automakers Chrysler, Ford Motor F -0.17% and General Motors GM +3.55% reported better than anticipated sales statistics for June.

Last month, General Motors delivered 267,461 vehicles in the United States. Total sales were up 1% from June 2013 with retail sales — to average drivers — up 1% and fleet sales — to companies using vehicles for business purposes — up 2%.  “June was the third very strong month in a row for GM, with every brand up on a selling-day adjusted basis,” said Kurt McNeil, GM’s U.S. vice president of Sales Operations, in a statement (there were two fewer selling days in June 2014 than June 2013).

McNeil added that the first half of the year brought the company’s best retail sales since 2008, largely driven by a strong second quarter. GM’s commercial fleet sales have grown every month since November 2013 and saw the best June results since 2007. “It’s clear that our commercial and small business customers are expecting a strong second half of the year and they are building their fleets to meet demand,” McNeil said.

The growth suggests that many car buyers have not been deterred by the string of recalls and investigations the company has announced or undergone since the start of this year. While shares of GM are down close to 10% year-to-date, the stock ticked up following the Tuesday auto sales release. Gaining 2% to around $37 GM shares more than reversed the 32 cent decline clocked between the closing bells Friday and Monday on the news it is has recalled another 7 million vehicles. This latest announcement brings GM’s total to more than 28 million vehicles recalled this year.

Ford stock initially inched into the green Tuesday climbing as high as $17.40 before ticking down. Ford delivered 222,064 vehicles in June, down 6% from a year ago but more than analysts were anticipating. Retail and fleet sales declined 5% and 7% respectively.

Chrysler, which is controlled by Italian car maker Fiat but not independently traded in the U.S. market, reported U.S. sales of 171,086, up 9% from last year. This was the company’s best June since 2007 and was largely driven by the Jeep brand.