Sales of the Accord were wonderful, growing 12% year-over-year to 33,218 units, though the other hot seller, the Civic, wasn’t as strong, with sales falling 9% year-over-year to 30,268 units. Like management noted, light truck sales were strong, with the Odyssey, Pilot, and CR-V all posting strong sales gains. Sales of the Ridgeline pickup benefitted from the housing strength, growing 36% year-over-year—but those sales totaled just 1,626 units.
Acura sales weren’t great, falling 1.5% in total, though cars (up 4% year-over-year) outpaced trucks (down 6% year-over-year). It is no secret how competitive the US luxury market has become, especially with players like Audi and Mercedes rolling out cars at lower price points. Nevertheless, the company’s low-end ILX model (pictured above) appears to be a hit, and we think this price range could accelerate as youth unemployment falls and more consumers flock to “affordable” luxury. Still, Honda Motor Co Ltd (NYSE:HMC) is fairly valued at this time.
Best of the rest
Fiat target Chrysler experienced 11% year-over-year unit sales growth to 166,596. Standouts included the Ram, which was up 22%, and strong contributions from the Avenger, Fiat 500, and the Challenger. Volkswagen was unable to match its pace from 2012, and sales declined 1.7% year-over-year. Beetle sales were strong thanks to a new convertible model, up 79% compared to the prior year, but the Jetta experienced a mild decline and the Passat only grew sales 1% year-over-year.
BMW’s North American sales were relatively strong, growing 10% year-over-year to 31,174 units. Growth was largely driven by the low-end 3-series, where sales climbed 47% compared to the prior year. Interestingly, motorcycle sales were up 61% year-over-year. Competitor Mercedes also rode strong tailwinds to strong May sales, which increased 8% year-over-year. Where was the strength? Not surprisingly, the low-end C-Class sales surged 20%.
Valuentum’s position
We’re still huge fans of the valuation upside offered by Ford ($20+). The firm remains a core holding in the portfolio of our Best Ideas Newsletter.
RJ Towner owns shares of Ford. Valuentum holds shares of Ford in the portfolio of its Best Ideas Newsletter. The Motley Fool recommends Ford and General Motors Company (NYSE:GM). The Motley Fool owns shares of Ford Motor Company (NYSE:F).
The article The US Auto Recovery Is Unshakeable originally appeared on Fool.com.
RJ is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
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