Q2 US Sales Snippets and Notes

BMW of North America announced today 1 July Q2 2020 sales results for the BMW and MINI brands in the U.S.  For the sales period ending June 30, 2020, BMW brand sales totaled 50,957 vehicles, a decrease of 39.3% vs the 83,976 vehicles sold in the same time last year. MINI brand sales totaled 5,288 vehicles, a decrease of 41.5% vs the 9,044 vehicles sold in the first quarter of 2019.

Since the onset of the global pandemic in the U.S. in mid-March, BMW has instituted several measures to sell and service vehicles across the U.S.  While the situation has differed greatly from state-to-state, at many locations, BMW has accelerated its use of digital sales practices, allowing customers to move further down the path to purchase online before visiting a store, and enabled virtual transactions so that purchases may be completed digitally and vehicles delivered.  Dealers are also offering “invisible” service where vehicles in need of service or maintenance are picked up and dropped off without interaction.

Ford Motor Company Q2 overall sales were down -33.3% at 433,869. Ford brand sales at 412,588 dropped -34%. Ford car at 40653 sank -61%. Ford truck at 278,891was off -22.2%. Lincoln brand at 21,281 dropped -18%. Shutdowns and shelter-in-place restrictions had the largest impact on fleet sales in Q2. Daily rental was down -94%, while commercial was off -78% from production shutdowns – commercial performance did improve sequentially through the quarter Ford claimed.

Ford’s overall truck and SUV retail share totaled more than 16.5% of the combined segment. F- Series Q2 overall sales total 180,825 pickups, while expanding its retail share of segment. F-Series expanded its leadership position in Q2 with an estimated 2.6 percentage point increase in retail share. Ranger overall sales gain 19.8% in Q2. Sales totaled 25,008 pickups for the quarter. Through June, Explorer leads as America’s best-selling mid-size SUV with sales of 101,149 vehicles. Total Explorer sales bucked the industry with sales up 12.4%. Lincoln’s estimated retail share of the premium SUV segment expanded 1.5 percentage points to 7% of share of segment in Q2. Expansion came from Lincoln’s newest SUVs – Aviator and Corsair.

Under the new Ford Promise program, customers who lease or purchase a vehicle with Ford Credit financing and then lose their job within a year can return the vehicle. Ford Credit will value the vehicle using the National Automobile Dealers Association (NADA) average trade-in value, reduce the customer’s outstanding balance by that amount and waive up to an additional $15,000. The customer is responsible for any difference remaining. In addition, the customer is responsible for any late or deferred payments due and vehicle damage. Once the conditions are met, the account is reported as closed and paid.

General Motors (NYSE: GM) delivered 492,489 vehicles in the second quarter of 2020, a decrease in total vehicle sales of about 34% compared to a year ago with demand outpacing supply in the latter half of the quarter. While the industry experienced significant declines due to the outbreak of COVID-19, full-size pickup truck sales performed well, and overall sales showed signs of recovery, especially deliveries to retail customers. Retail sales were off by about -24% in the quarter, roughly in line with the industry. Retail sales in April were down the most in the quarter, off by about -35% compared to last year, but recovered in May and June with year-over-year declines of around -20% or less.

Availability of models on dealer lots is expected to start growing now that most manufacturing assembly plants have returned to normal operating levels. U.S. pickup truck and full-size SUV plants returned to three shifts and nearly all car and crossover plants returned to the same number of shifts as pre-pandemic levels. Most of GM’s U.S. plants, including all truck and SUV plants, will continue to operate during the traditional two-week summer shutdown.

GM Canada – Chevrolet, Buick, GMC and Cadillac dealers delivered 50,074 vehicles in the second quarter of 2020, a decrease of -35.5% compared to a year ago.

Genesis Motor America today reported sales of 1,429 units in June 2020, a -24.3% decrease compared with the prior year. However, Genesis enjoyed a 5.9% increase vs. May 2020. For the first six months of 2020, Genesis Motor America sold 7,540 units, a -24.7% decrease for the calendar year thus far.

Hyundai Motor America reported total June sales of 50,135 units, a -22% decrease compared with June 2019. Retail sales grew 6%. It is the second straight month the company has recorded increasing year-over-year retail sales. Fleet sales were down -93% and represented only 2% of total volume. Hyundai sold 48,935 retail units in June, with SUVs representing 69% of the total retail mix. Hyundai SUV retail sales grew 34% with the flagship SUV Palisade establishing a new overall and retail monthly sales record. Santa Fe retail sales were up 14% and Kona retail sales increased by 1%.

For the second quarter, Hyundai sold 141,722 total units, a 24% decline and 134,122 retail units, a 5% decline compared with Q2 2019. During the first half of the year, Hyundai sold 272,597 total units, an 18% decline and 248,184 retail units, a 3% decline compared with the first half of 2019.

Kia Motors America’s June sales total of 47,870 vehicles featured retail-only sales within one percent of the June 2019 mark despite a shortage of the Telluride SUV and other models. Light Truck Sales Up 9.5-% Year-Over-Year On A Selling Date Adjusted Basis. Year to date sales were 263,337 compared to 304,844 in 2019.

Mazda North American Operations (MNAO) today reported total June sales of 25,326 vehicles, an increase of 10.9% compared to June 2019. Sales in the first half of the year totaled 128,869 vehicles, a decrease of -7% compared to the same time last year. With 25 selling days in June, compared to 26 the year prior, the company posted an increase of 15.4% on a Daily Selling Rate (DSR) basis. The CX-9 saw its best June ever with 2,727 vehicles sold, an increase of 48.9%. The CX-30 saw best-ever sales results since launching in November 2019 with 3,526 vehicles sold. Sales of the MX-5 Miata increased 27.3% with 966 vehicles sold in June. CPO sales totaled 7,133 vehicles in June, an increase of 25.8% compared to June 2019.

Subaru of America reported 53,911 vehicle sales for June 2020, a —12% decrease compared with record June 2019. These results reflect the impact of the COVID-19 global pandemic and the uncertainty surrounding economic recovery. Following eleven consecutive years of sales records, Subaru reported year-to-date sales of 267,110, a -21% decrease compared to the same period in 2019. The automaker also announced today that to provide the most consistent picture of brand performance in line with the auto industry, Subaru of America will begin reporting sales results quarterly, effective immediately. Subaru of America will release third quarter sales on or around October 1, 2020.

Volkswagen of America Q2 2020 sales fell -29% from 2019 with 69,933 deliveries reported in Q2 2020. Q2 retail sales were down 16% from 2019. Retail sales for the month of June down -1.6%. SUV share of sales in Q2 2020 hit a record 60%. YTD sales of 145,008 down -22%.

About Ken Zino

Ken Zino is an auto industry veteran with global experience in print, broadcast and electronic media. He has auto testing, marketing, public relations and communications expertise garnered while working in Asia, Europe and the U.S.
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