New-Car Sales To Fall 2.7 Percent Year-Over-Year In June, Climb 5.5 Percent For Q2 2014

IRVINE, Calif., June 27, 2014 /PRNewswire/ -- New-vehicle sales are expected to fall 2.7 percent year-over-year to a total of 1.36 million units, resulting in an estimated 16.3 million seasonally adjusted annual rate (SAAR), according to Kelley Blue Book www.kbb.com, the only vehicle valuation and information source trusted and relied upon by both consumers and the automotive industry. 

"A total of 1.36 million units sold this month will bring the number of units for the first half of 2014 to 8.1 million units, a 3.5 percent increase from last year," said Alec Gutierrez, senior analyst for Kelley Blue Book.  "Following a slow start to the year, second-quarter totals will hit nearly 4.36 million, a 5.5 percent increase from the second quarter of 2013 and also the best second quarter since 2006. At this rate, the 16.3 million SAAR expected in June will be the third month above 16 million SAAR in the past four months, showing strong momentum heading into the second half of the year." 

Key Highlights for Estimated June 2014 Sales Forecast:

• In June, new light-vehicle sales, including fleet, are expected to hit 1,364,000 units, down 2.7 percent from June 2013 and down 15 percent from May 2014.
• The seasonally adjusted annual rate (SAAR) for June 2014 is estimated to be 16.3 million, up from 15.8 million in June 2013 and down from 16.7 million in May 2014.
• Retail sales are expected to account for 83 percent of volume in June 2014.

Chrysler, Nissan Drive More Than Half of Industry's Year-to-Date Sales Growth
While sales are expected to slow in June, Kelley Blue Book continues to see positive growth for Chrysler and Nissan.  Both automakers have experienced strong sales in 2014 and the two combined have driven more than half of the industry's year-to-date sales growth. 

"One of the greatest sales declines may come from Ford, which is preparing to restructure its F-Series factories in preparation for the new aluminum-bodied truck later this year," said Gutierrez.  "By implementing changes to its factories, Ford will need to ensure it has enough inventory to last through the transition, potentially pushing sales down in the near-term."    

Compact Utility Vehicles May Pass Full-Size Pickup Trucks to Become Third-Largest Segment
The fastest-growing segment in June continues to be the compact SUV/crossover segment, which may pass full-size pickup trucks this year to become the third-largest segment in the industry.  Helped by models such as the Nissan Rogue and Subaru Forester, vehicles in this segment are spending an average of 47 days in inventory, compared to the industry average of 66 days. 

Kelley Blue Book expects full-size pickup trucks to report the largest decline of all major vehicle segments, which could be driven by Ford's upcoming F-Series redesign and the manufacturer's need to maintain inventory during the factory retooling.  While RAM sales have been strong (up 21 percent for the year), sales of the new Chevrolet Silverado have been tepid (down 1 percent). 

There are 24 sales days in June 2014, compared to 26 sales days in June 2013.  All percentages are based on raw volume, not daily selling rate.

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About Kelley Blue Book (www.kbb.com)
Founded in 1926, Kelley Blue Book, The Trusted Resource®, is the only vehicle valuation and information source trusted and relied upon by both consumers and the automotive industry.  Each week the company provides the most market-reflective values in the industry on its top-rated website KBB.com, including its famous Blue Book® Trade-In and Suggested Retail Values, and Fair Purchase Price, which reports what others are paying for new cars this week.  The company also provides vehicle pricing and values through various products and services available to car dealers, auto manufacturers, finance and insurance companies, and governmental agencies.  Kelley Blue Book's KBB.com ranked highest in its category for brand equity by the 2014 Harris Poll EquiTrend^® study and has been named Online Auto Shopping Brand of the Year for three consecutive years.  Kelley Blue Book Co., Inc. is a Cox Automotive company.

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SOURCE Kelley Blue Book