June U.S. sales: GM Q2 volume slips; Hyundai, Kia sales fall 4th straight month on low inventory
U.S. light-vehicle sales slid 15 percent in the second quarter at General Motors as global parts shortages and shipping woes continue to hobble output at automakers, leaving showrooms largely empty of new cars and light trucks for a year now.
Deliveries dropped 11 percent at Chevrolet, 14 percent GMC, 56 percent at Buick and 6.7 percent at Cadillac in the April-June period. GM’s U.S. sales have now dropped four consecutive quarters, though sales have increased sequentially three straight quarters and it expects to gain market share for the third consecutive quarter.
The company, citing “strong” second-quarter production, said it ended June with 247,839 vehicles in U.S. dealer inventory, including cars and light trucks in transit to showrooms. GM’s second-quarter vehicle wholesale shipments were negatively impacted by ongoing semiconductor shortages and other supply chain disruptions, mostly in June. The company said it is holding 95,000 vehicles assembled without certain components in inventory until they are completed, which it said will occur during the second half of the year.
In the first half, GM’s U.S. sales dropped 18 percent, though many of the company’s most profitable vehicles — the Chevrolet Silverado, Suburban and Tahoe, and Cadillac Escalade and GMC Yukon — fared better.
Volume dropped 13 percent at Hyundai and 4.9 percent at Kia last month behind weaker car deliveries. It was the fourth straight monthly decline for both automakers, though Hyundai’s volume — 63,091 cars and light trucks — marked a high for 2022, even with retail volume down 5.5 percent.
Hyundai said it finished June with 17,922 cars and light trucks in U.S. inventory, down from 18,641 to close May and 67,992 at the end of June 2021.
“Our dealers are selling everything they get, and we are continuing our efforts on growing market share,” said Randy Parker, senior vice president of national sales at Hyundai Motor America.
Mazda’s U.S. sales skidded 54 percent in June, the company’s third consecutive decline. Genesis’ deliveries rose for the 19th straight month with June volume advancing 11 percent to 4,506.
Most other automakers will release June or second-quarter sales results later Friday. Ford Motor Co. and Volvo plan to report June deliveries on Tuesday July 5, followed by Mercedes-Benz and Jaguar Land Rover later next week. Tesla Inc. is the only automaker projected to post higher second-quarter and first-half sales.
The market is expected to contract 7.5 percent to 12 percent in June, according to forecasts from LMC Automotive. J.D. Power, Cox Automotive and TrueCar, with second-quarter deliveries projected to drop by double digits. June will mark the 12th consecutive month of year over year declines, according to J.D. Power.