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US auto sales slow in May; GM hit hard
[NEW YORK] US auto sales slipped into lower gear in May, with the country's leading automaker General Motors taking a hard hit as consumers curbed spending ahead of the summer driving season.
Analysts had expected softer May sales following a blockbuster April as a seven-year boom in the auto industry shows signs of moderating. Though job growth has been solid and wages are inching up, consumers have recently turned a bit less optimistic about the health of the US economy.
According to Autodata Corporation, May's sales pace was at an annual rate of 17.45 million units, up two per cent from April, but down six percent from a year ago.
General Motors said it sold 240,450 vehicles in May, down 18 per cent from a year ago. Industry researcher Edmunds.com had forecast 254,643 deliveries.
GM said sales fell across brands, including Buick, down 22.1 per cent, and Chevrolet, 18.6 per cent.
Ford, the number-two US automaker, reported sales fell 5.9 percent year-over year to 235,997 vehicles, missing Edmunds.com's estimate of 242,771 units. Ford brand sales fell but luxury brand Lincoln posted a 5.9 per cent rise.
Over the first five months of the year, GM sales were down five per cent from the same period in 2015, while US rival Ford sales rose 4.2 per cent.
On Wall Street, GM shares lost 3.4 per cent and Ford shed 2.9 per cent.
Italian company Fiat Chrysler Automobiles reported its unit FCA US had a one percent rise in US sales in May, better than the market expected. Leading the gain was a 14 per cent jump in Jeep brand vehicles; Chrysler brand sales fell 19 per cent. FCA shares dropped 1.8 per cent.
Toyota, the world's largest automaker, said its US sales fell 9.6 per cent but noted that the month of May this year has two fewer selling days than in 2015.
Toyota brand sales dropped 9.5 per cent and sales of the Japanese company's luxury brand Lexus were down 10.1 per cent.
Sales of Toyota's fuel-economy hybrid Prius plunged 36 per cent from a year ago and were down about 25 per cent since the beginning of 2016.
Volkswagen, the German automaker mired in scandal after admitting using emissions-cheating software in 11 million diesel vehicles worldwide, reported US vehicle sales fell 17.2 per cent in May, bringing the total decline over the first five months of the year to 13 per cent.
Audi, one of VW's brands, separately reported a 1.6 per cent rise in sales.