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May 2016: FCA wins, Ford and GM stumble on weak car volumes

The May 2016 sales numbers are in, and it looks as though FCA is getting some vindication for boldly cancelling two slow-selling car models. Meanwhile, Ford saw overall sales dip and GM's May volume took a big dive versus the same month in 2015. While Marchionne's decision to axe the Chrysler 200 and Dodge Dart has drawn criticism as being short-sighted, it's working for FCA so far. Although the Dart and 200 aren't out of production yet and no capacity has been shifted to crossover or trucks, May's numbers show that the emphasis on Jeep and Ram models makes sense right now. FCA's US sales rose 1 percent last month compared to May 2015, putting the year-to-date total at 955,186 vehicles, an increase of 6 percent compared to the same period last year. Standouts included the Jeep Renegade, Compass, and Patriot, and the Fiat 500X. Ram pickup sales were down 3 percent. And your fun fact is that Alfa Romeo sales were up precisely 10 percent, for a total of 44 4Cs sold versus 40 in the same month last year. At FoMoCo, the Ford brand took a hit to the tune of 6.4 percent from May 2015 to 2016, registering 226,190 sales last month. Lincoln showed improvement on its modest numbers, going from 9,174 to 9,807, a 6.9 percent increase. Overall, Ford was down 5.9 percent for the month to 235,997; despite the slump, year-to-date total Ford sales are up 4.2 percent to 1,112,939. Strong sellers included Escape, Expedition, F-Series, and Transit - big stuff. Most small and/or efficient models (Fiesta, Focus, Fusion, C-Max) saw sales slides. Fusion sales were also down, likely due to effects of model changeover to the freshened 2017 model. Ford has promised four new crossovers and SUVs by 2020 and if things keep trending this way the company will be able to sell them, but things could change in the next four years. GM saw the worst of it for domestic brands. Retail and fleet sales were down for each of the four divisions, with the May 2016 total dropping 18 percent to 240,450 vehicles. GM's year-to-date sales are down 5.0 percent in 2016 to 1,183,705. Both the Sierra and Silverado were down significantly, and the majority of Chevy, Buick, GMC, and Cadillac nameplates saw sales decreases, with both small cars and larger utilities included. Not even big stuff could help GM this month, it seems. We'll have more on the rest of the industry's May sales as those figures trickle in.

Buick lowering base prices on Regal, Verano

Buick might have two new options for buyers in the market for an inexpensive luxury sedan. In a move similar to the introduction of the LaCrosse 1SV base trim a few months ago, the brand is ready to offer cheaper, entry-level versions of the Regal and Verano. Like the LaCrosse 1SV, the Verano 1SV mostly cuts dealer margins to reduce the cost for customers. The small sedan is priced at $21,065, plus $925 destination, which is a significant $2,315 drop compared to the next higher trim. The powertrain is still a 2.4-liter four-cylinder making 180 horsepower and 171 pound-feet of torque and a six-speed automatic, but buyers lose out on satellite radio. According to CarsDirect, dealers are making just $106 on this model, versus $935 on the higher grade. Meanwhile, the Regal 1SV charts a slightly different path to a lower price. The trim starts at $27,065, which is a $2,925 savings over the next trim. Buyers still get leather seats too, but the powertrain here is a 2.4-liter four-cylinder without eAssist that makes 182 hp and 172 lb-ft of torque and a six-speed automatic. That's a 77 hp deficit compared to the turbocharged Regal, and combined city/highway fuel economy dips to 23 miles per gallon combined, compared to 24 mpg with forced induction. Buick is introducing the 1SV models in hopes of grabbing more attention for the brand. "We added this new base level to some models as a means of expanding the opportunity for more customers to experience Buick vehicles. The addition of these trims will create an increased awareness and consideration of these vehicles when being compared to the competition," said company spokesperson Nick Richards to Autoblog. However, you might not see many of these inexpensive Buicks on the road. "On the Verano, we suspect dealers will opt to stay away from a car with around $100 between invoice and MSRP - that's the pattern we've been seeing on the LaCrosse 1SV, which is practically impossible to find," said CarsDirect Senior Pricing Analyst Alex Bernstein to Autoblog. Also, the Regal 1SV's switch to a less powerful, naturally aspirated engine "could be a turn-off for some shoppers," he said. Related Video:

General Motors posts record earnings, but global sales fall

General Motors started the year with record success. The automaker's $2.7 billion in adjusted earnings before interest and taxes was its highest ever in in the first quarter of 2016, up from $2.1 billion in from the same time period a year earlier. Net income grew to $1.95 billion, which was more than double the $953 million in the same period last year. The company's figures also beat analysts' predictions, according to the Detroit Free Press. Despite the financial growth, global sales actually decreased by 2.5 percent to 2.36 million vehicles. "We're growing where it counts, gaining retail share in the US, outpacing the industry in Europe and capitalizing on robust growth in SUV and luxury segments in China," CEO Mary Barra said in the company's financial announcement. GM did well in North America with an adjusted EBIT of $2.3 billion, up from $2.2 billion last year. Sales in the region also grew 1.2 percent to 800,000 vehicles. According to The Detroit Free Press, the company has been especially successful at selling more expensive models in the US. The company's average vehicle was $34,600 in Q1, about $3,000 more than the industry average. Elsewhere in the world, GM also showed improvement. Europe practically broke even after losing about $200 million last year, and Opel and Vauxhall sales grew 8.4 percent to more than 300,000 vehicles for the quarter. South America only lost $100 million, which was half as much as Q1 2015's $200 million loss. China remained flat at $500 million of income. Cadillac volume jumped 6.1 percent there, and Buick's deliveries increased 22 percent, thanks to the Envision crossover's success. GM Reports First-Quarter Net Income of $2.0 Billion 2016-04-21 EPS diluted of $1.24; First-quarter record EPS diluted-adjusted of $1.26 First-quarter record EBIT-adjusted of $2.7 billion GM Europe posts break-even performance DETROIT – General Motors Co. (NYSE: GM) today announced first-quarter net income to common stockholders of $2.0 billion or $1.24 per diluted share, compared to $0.9 billion or $0.56 per diluted share a year ago. Earnings per share diluted-adjusted for special items was a first-quarter record at $1.26, up 47 percent compared to the first quarter of 2015. The company set first-quarter records for earnings and margin, with earnings before interest and tax (EBIT) adjusted of $2.7 billion and EBIT-adjusted margin of 7.1 percent.