USA May 2016: Market down 6%, largest drop since August 2010

Jeep posts an all-time monthly volume record in May at 90.545 sales.

* Now updated with the Top 15 groups, Top 40 All-brands and Top 275 models *

Passenger cars are on track to become a thing of the past in the U.S.A. and are weighing down otherwise brilliant light truck sales to pull the market into frank negative territory in May. The overall U.S. market is down 6% year-on-year to 1.536.276 units – its largest year-on-year drop in almost 6 years (since August 2010) where a 2% rise in light truck sales was cancelled by an abysmal 16% drop by passenger cars, now representing just 42% of the market. May 2016 counted 24 selling days vs. 26 in May 2015, so the 6% drop actually translates into a 2% rise in the daily sales rate, yet indicating a slowing down of the market growth. The seasonally adjusted annual sales rate for May is 17.46 million units, in line with last year;s record 17.47 million total, but the year-to-date total is now up just 1.2% through end-May to 7.131.019 deliveries, and doubts are starting to emerge as to whether 2016 with see a 7th consecutive year of growing volumes and a 2nd all-time record year in a row.

General Motors crumbles down 18% as it continues to scale back fleet sales.

General Motors crumbles down 18%, partly due to its ongoing retreat for less-profitable fleet sales but its retail sales are also hit by supply disruptions linked to the latest Japan earthquake. Yet according to TrueCar, GM saw the largest average incentives among mainstream carmakers at $3,941 per new vehicle. At 15.7%, GM falls to its lowest ever market share in the U.S. According to Automotive News, before 1990 GM’s annual market share ranged between 30 and 50% stretching back to the 1950s. All of GM’s brands recorded double-digit drops in May: Chevrolet (-19%) is now #3 brand year-to-date below Toyota, GMC (-14%), Buick (-22%) and Cadillac (-16%)

Ford Motor follows the market at -6% with the Ford brand down 7% but Lincoln up 7%, Toyota Motors falls 10% with the Toyota brand down 11%, Lexus down 10% but Scion up 39%, American Honda is down 5% with the Honda brand down 3% and Acura at -20%, Nissan Motor is down 1% and the Volkswagen Group down 10% with the VW brand falling 17% – its 7th consecutive monthly decline – but Audi posts an incredible 65th consecutive monthly sales record at +2% to 18.728.

Hyundai defies adverse market conditions to post a 12% increase in May.

Fiat Chrysler FCA manages to extend its streak of consecutive year-on-year gains to 74 months at +1% to 204.452 units thanks to very generous incentives ($3,926) and the performance of Jeep delivering an all-time volume record (+14%) while Ram is up just 0.03% and Dodge (-5%), Chrysler (-19%) and Fiat (-19%) fall apart. Let’s pause for a minute on Jeep’s astounding score: the brand has now broken its all-time monthly volume record no less than 6 times in the past 18 months: March 2015 (71.584), April 2015 (71.759), May 2015 (79.652), August 2015 (80.804), December 2015 (89.654) and May 2016 (90.545). Six-digit monthly figures should be the target for the manufacturer in 2017 when Compass and Patriot replacement should point their muscled bonnet as well as the up-scale Wagoneer and Grand Wagoneer at horizon 2018.

Subaru posts a 54th consecutive month of year-on-year gains. 

Hyundai gains a splendid 12% to 71.006 sales despite soft incentives ($2.032 per vehicle) and sister company Kia is also in positive at +1% to 62.926 with average incentives of $2.715. Finally Subaru continues to defy gravity, lodging its 54th consecutive month of year-on-year gains at +1% to 50.083 sales, all this with almost no incentives at an average of $612 per vehicle, the lowest in the market by far. Other notable average incentive figures include VW/Audi ($3,448), Ford ($3,433), Nissan ($3,342), Toyota ($2,029) and Honda ($1,635) – source TrueCar.

The Toyota RAV4 confirms it has now replaced the Honda CR-V as America’s favourite SUV.

Over in the models charts, the Ford F-Series further cements its domination by gaining 9% to 67.412 sales, the only vehicle in the Top 4 to actually post an increase: the Chevrolet Silverado falls a steep 13%, the Ram Pickup is down 3% and the Toyota Camry tumbles 16% but regains the top passenger car spot off the Honda Civic (+3%) with the Toyota Corolla (-5%) in tow. The Toyota RAV4 improves by a stunning 12% to consolidate its newfound leadership in the SUV segment, just as the Ford Escape (+6%) manages to overtake the once-leader Honda CR-V (-9%), now also threatened by the Nissan Rogue (+6%). Further down, the Hyundai Santa Fe (+88%), Jeep Patriot (+19%), Nissan Versa (+20%) and Dodge Grand Caravan (+76%) impress while the Jeep Renegade posts its very first five-digit monthly figure at 10.868 sales and a record 43rd spot.

The China-made Buick Envision has arrived in the U.S.

Among recent launches (i.e. models launched less than 12 months ago), the Scion iA leads the pack at #119 with 3.056 sales, but is likely to lose this spot pretty shortly: the Cadillac XT5 is up 102 spots on April to #129 and the Chrysler Pacifica continues to spread into U.S. dealerships, up 79 ranks on last month to #132 with 2.495 sales. We also welcome three new nameplates in the U.S. sales charts in May: the Jaguar F-Pace at #205, the Jaguar XE at #208 and the China-made Buick Envision at #252. Note the Envision launches in China in October 2014 and has been a runaway success there.

Previous month: USA April 2016: Strong incentives and light trucks push market up 3.5%

One year ago: USA May 2015: Highest ever May volume and 17.8 million annual pace

Full May 2016 Top 15 groups, Top 40 All-brands and Top 275 models below.