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Please direct all media inquiries to J.D. Power and Associates Corporate Communications Department:


J.D. Power and Associates
Corporate Communications
2625 Townsgate Road
Westlake Village, CA 91361
Toll Free: (800) 274-5372
Phone: (805) 418-8000
Fax: (805) 418-8900
media.relations@jdpa.com


John Tews
Director, Media Relations
Troy, MI
(248) 680-6200


Syvetril Perryman
Media Relations Supervisor
Westlake Village, CA
(805) 418-8103


Andrew Teachout
Media Relations Specialist
Troy, MI
(248) 680-6200

 

Press Release
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Contact:
Syvetril Perryman
(805) 418-8103
John Tews
(248) 680-6218
 

J.D. Power and Associates Reports:
June New-Vehicle Retail Sales Improve from the Weakness in May

WESTLAKE VILLAGE, Calif.: 24 June 2011 — New-vehicle retail sales rebounded in the first half of June, as consumers, despite mixed economic signals, returned to dealerships, according to J.D. Power and Associates, which gathers real-time transaction data from more than 8,900 retail franchisees throughout the United States.

Retail Light-Vehicle Sales
June new-vehicle retail sales are projected to come in at 884,800 units, which represents a seasonally adjusted annualized rate (SAAR) of 9.9 million units. The retail selling rate is showing marked improvement from May’s 9.3-million-unit level. Large pickup and compact car sales are supporting the overall retail sales increase. Large pickups are accounting for 10.6 percent of retail sales month-to-date—the highest level since February—while compact cars comprise 17.6 percent of retail sales, up from 17.2 percent in May. Retail transactions are the most accurate measurement of true underlying consumer demand for new vehicles.

“There has been some easing of negative variables in June, as the inventory shortage has not been as severe as expected, and gas prices have dropped noticeably from higher levels in April and May,” said Jeff Schuster, executive director of global forecasting at J.D. Power and Associates. “Provided that the economy decides to cooperate, the automotive summer slowdown will only be a speed bump, and a return of a measurable recovery pace is still expected in the second half of 2011.”

U.S. Retail SAAR—June 2010 to June 2011
(in millions of units)

 

Total Light-Vehicle Sales
Total light-vehicle sales in June are expected to come in at 1,106,400 units, which is 8 percent higher than in June 2010. Fleet sales are expected to be lower in June due to the inventory shortages and are projected to finish the month at 221,600 units, down 9 percent from June 2010.

J.D. Power and Associates U.S. Sales and SAAR Comparisons

 

June 20111

May 2011

June 2010

New-vehicle retail sales

884,800 units
(14% higher than June 2010)2

833,847 units

746,618 units

Total vehicle sales

1,106,400 units
(8% higher than June 2010)

1,059,505 units

981,429 units

Retail SAAR

9.9 million units

9.3 million units

8.4 million units

Total SAAR

12.0 million units

11.7 million units

11.1 million units

1Figures cited for June 2011 are forecasted based on the first 16 selling days of the month.
2The percentage change is adjusted based on the number of selling days (26 days vs. 25 days one year ago).

Sales Outlook
Even as some of the pressure has lessened, the level of uncertainty remains high. J.D. Power has slightly reduced its forecast for 2011 retail sales to 10.5 million units from 10.6 million units. The forecast for total sales has been revised to 12.9 million units from 13 million units.

“Conditions for light-vehicle sales are improving, but the automotive market remains fluid and susceptible to a slower economic recovery or external shock,” said John Humphrey, senior vice president of automotive operations at J.D. Power and Associates. “This risk is driving a more cautious approach to the market outlook for the remainder of 2011 and into 2012.”

North American Production
Through May, light-vehicle production for North America on a year-to-date basis is up 10 percent from the same period in 2010. Volume for the first five months of 2011 came in at 5.3 million units, compared with 4.8 million units built during the same period in 2010. Production for Japanese manufacturers has declined nearly 13 percent thus far this year, as parts shortages have caused volume disruptions.

However, the recovery pace has been accelerated and most operations are expected to return to pre-disaster levels in the coming weeks. In addition to the recovery of volume with the Japanese brands, production has been ratcheted up among the Detroit Three and European and Korean brands. The Detroit Three are up 18 percent year-to-date, compared with 2010. The European manufacturers are up 44 percent, and the Korean manufacturers are up 56 percent for the same period.

Inventory levels declined to 49 days’ supply at the beginning of June, five days less than the previous month’s 54 days’ supply. This drop was not as severe as expected, but is consistent with the decline in the selling pace in May. Inventory conditions should improve in the coming months, but many smaller size models and some Japanese imported models will remain in very short supply for the near future.

Given the positive news of a faster stabilization with the Japanese manufacturers and higher-than-expected increases by the Detroit Three, J.D. Power’s North American production forecast for 2011 is again back to the 12.9-million-unit level.

About J.D. Power and Associates
Headquartered in Westlake Village, Calif., J.D. Power and Associates is a global marketing information services company providing forecasting, performance improvement, social media and customer satisfaction insights and solutions. The company’s quality and satisfaction measurements are based on responses from millions of consumers annually. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. J.D. Power and Associates is a business unit of The McGraw-Hill Companies.

About The McGraw-Hill Companies
Founded in 1888, The McGraw-Hill Companies is a leading global financial information and education company that helps professionals and students succeed in the Knowledge Economy. With leading brands including Standard & Poor’s, McGraw-Hill Education, Platts energy information services and J.D. Power and Associates, the Corporation has approximately 21,000 employees with more than 280 offices in 40 countries. Sales in 2010 were $6.2 billion. Additional information is available at http://www.mcgraw-hill.com.

 

Media Relations Contacts:

Syvetril Perryman
J.D. Power and Associates
Specialist, Media Relations
2625 Townsgate Road, Suite 100
Westlake Village , CA 91361
USA
(805) 418-8103
syvetril.perryman@jdpa.com

John Tews
J.D. Power and Associates
Director, Media Relations
5435 Corporate Drive
Suite 300
Troy , Mich. 48098
USA
(248) 680-6218
john.tews@jdpa.com

 

No advertising or other promotional use can be made of the information in this release without the express prior written consent of J.D. Power and Associates. www.jdpower.com/corporate

 

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About J.D. Power and Associates:
The Voice of the Customer

J.D. Power and Associates is a global marketing information services company operating in key business sectors across a variety of industries, providing customer satisfaction research, market research, automotive forecasting, social media research, and performance improvement programs. Established in 1968, the company has been listening to consumers and business customers; analyzing their opinions and perceptions; and refining research techniques and study methodologies to offer some of the most advanced product quality, customer satisfaction, and tracking research available today. The company’s quality and satisfaction measurements are based on responses from millions of consumers annually.