Automakers reported strong June sales in the United States. Riding a wave of truck sales and new crossovers, GM posted a 4.6% increase for the second quarter and increased its market share to 16.6%. Ford increased total sales in June by 1.2% over June 2017, and increased SUV and truck sales by 8.9% and 3.2%, respectively. FCA reported its best June retail sales in 14 years, with Jeep increasing sales by 19% for its best June sales to date.
Other automakers also celebrated strong truck, crossover, and SUV sales, with Honda setting a new June sales record driven by strong sales of the Acura RDX, Honda Pilot, and Honda CR-V. Toyota’s sales were up 3.6%, with record sales of the RAV-4 and Highlander.
Internationally, the markets showed mixed results. Although auto sales in China rose 4.8% in June, this was a sharp decrease from the 9.6% growth in May and 11.5% growth in April. German sales rose 4.2% in June, with VW brand’s sales increasing 9.6%. New car sales in Italy declined 7.3% in June, largely due to a 17% decrease in diesel sales.
Automakers and industry analysts are keeping a close eye on the impact of tariffs on auto sales over the remainder of the year, even as a group of steel users filed a legal challenge to the U.S. steel tariffs. In the challenge, the American Institute for International Steel seek a declaration that Section 232 of the Trade Expansion Act of 1962, upon which the tariffs are based, is unconstitutional.
Despite the pending legal challenge and changing landscape of the tariffs, automakers have already begun adjusting for the impact of tariffs. BMW announced it is moving production of some of its SUVs to China and raising the price of SUVs imported to China to offset the tariffs. Tesla similarly increased the prices of its cars in China by 20%. However, Ford announced it does not currently intend to raise prices in response to the tariffs, as many of its cars are built in local factories. Ford has faced a challenging 2018 in China, with its June auto sales in China reflecting a steep decrease of 38% from June 2017, and the first half of the year showing a 25% decrease year over year. GM and other automakers have not yet determined whether they will revise their prices due to the tariffs.
This blog is made available by Foley & Lardner LLP (“Foley” or “the Firm”) for informational purposes only. It is not meant to convey the Firm’s legal position on behalf of any client, nor is it intended to convey specific legal advice. Any opinions expressed in this article do not necessarily reflect the views of Foley & Lardner LLP, its partners, or its clients. Accordingly, do not act upon this information without seeking counsel from a licensed attorney.
This blog is not intended to create, and receipt of it does not constitute, an attorney-client relationship. Communicating with Foley through this website by email, blog post, or otherwise, does not create an attorney-client relationship for any legal matter. Therefore, any communication or material you transmit to Foley through this blog, whether by email, blog post or any other manner, will not be treated as confidential or proprietary.
The information on this blog is published “AS IS” and is not guaranteed to be complete, accurate, and or up-to-date. Foley makes no representations or warranties of any kind, express or implied, as to the operation or content of the site. Foley expressly disclaims all other guarantees, warranties, conditions and representations of any kind, either express or implied, whether arising under any statute, law, commercial use or otherwise, including implied warranties of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Foley or any of its partners, officers, employees, agents or affiliates be liable, directly or indirectly, under any theory of law (contract, tort, negligence or otherwise), to you or anyone else, for any claims, losses or damages, direct, indirect special, incidental, punitive or consequential, resulting from or occasioned by the creation, use of or reliance on this site (including information and other content) or any third party websites or the information, resources or material accessed through any such websites.
In some jurisdictions, the contents of this blog may be considered Attorney Advertising. If applicable, please note that prior results do not guarantee a similar outcome. Photographs are for dramatization purposes only and may include models. Likenesses do not necessarily imply current client, partnership or employee status.