Auto industry enjoying the best of times

DETROIT -- Fiat Chrysler Automobiles' April sales were 5.6 percent higher than those seen during the same period a year earlier, and Ford's were up 4 percent, but General Motors posted a 3.5 percent decline as it de-emphasized fleet sales.

GM's retail sales, however, were up 3 percent as the automaker concentrates on more profitable sales to consumers.

Among the three largest Japanese automakers, Honda reported sales of its combined Honda and Acura brands jumped 14.4 percent, as sales of its Accord midsize and Civic compact models were up 15.7 percent and 24.5 percent, respectively. Toyota sales increased 3.8 percent, as a 5 percent gain at its mainstream Toyota brand more than offset a 3.8 percent drop at its Lexus luxury division.

Nissan Group sales climbed 13 percent in the month as mainstream Nissan brand sold 14 percent more vehicles (113,429) than a year ago, and Infiniti sales rose 4.5 percent to 10,432.

Volkswagen, struggling in the wake of last fall's disclosure that it cheated on diesel emission tests, reported that its April sales in the United States fell nearly 10

percent to 27,112. Through the first four months of the year, VW sales were down 11.7 percent.

A combination of low interest rates, free-flowing credit, pent-up demand and consumer willingness to spend more than ever, especially for larger vehicles is fueling the industry's torrid selling pace, which forecasters expect will exceed last year's record of 17.5 million vehicles.

In April, Americans likely bought or leased more than 1.5 million new cars and trucks, or 4.3 percent more than in April 2015.

"Considering that April is typically the calm before the storm of summer sales, there's every reason to believe that 2016 will be a year for the history books," Jessica Caldwell, director of industry analysis for Edmunds.com, said in a recent report.

At FCA, demand for the automaker's popular Jeep and Ram brands rose 17 percent and 12 percent, respectively. April also marked the 73rd consecutive month that the automaker posted monthly sales gains.

However, there are signs of trouble for FCA as demand for its passenger cars remains weak. Sales fell 19 percent for Fiat, tumbled 18 percent for Chrysler brand and slipped 3 percent for Dodge.

"Consumer preference for SUVs and pickup trucks continued unabated in April and helped to propel us to our strongest April sales in 11 years," Reid Bigland, head of U.S. sales for FCA, said in a statement. "Both our Jeep and Ram Truck brands recorded strong year-over-year sales gains last month."

Automakers also are enjoying record high prices. The average price of a new car rose 1.9 percent in April to $33,865, according to Kelley Blue Book.

GM showed it is willing to sacrifice sales to fleet customers in exchange for more profitable sales to consumers. Total sales were below year-earlier levels for all four brands (Cadillac down 29 percent, Buick down 2.8 percent, Chevrolet down 2.3 percent and GMC down 0.1 percent), but sales of full-size pickups remain strong as Chevrolet sold nearly 50,000 Silverados (up 8.7 percent), and GMC sold 20,531 Sierra pickups, up 13.5 percent.

There were other positive signs in GM's reports. For example, its redesigned Chevrolet Malibu outsold Ford Fusion by 21,763 to 20,730. Sales of the Chevrolet Volt extended range plug-in electric car, more than doubled to 1,983.

But Ford sold 70,774 F-Series pickups, more than the total of all Ford and Lincoln brands cars sold in the month.

Sales of the company's midsize and large SUVs, Explorer and Expedition soared 22 percent and 47 percent, respectively.

Still, there are signs that industry sales are near a peak. April's robust industry sales helped by an increase in sales to fleet buyers, according to J.D. Power and Associates. Meanwhile, sales to individual consumers likely remained flat.

"The rate of unit growth is unquestionably slowing," John Humphrey, senior vice president of the global automotive practice at J.D. Power, said in a recent report. "The slowing rate of growth, shift in consumer demand away from cars and toward SUVs, and elevated fleet volumes pose significant challenges to manufacturers as they compete in the marketplace."

This story was originally published May 3, 2016 at 11:24 PM with the headline "Auto industry enjoying the best of times ."