AutoNation posts 15% drop in new car sales in May
AutoNation (NYSE:AN) reported Thursday a 15% year-over-year drop in new vehicle unit sales for the month of May, driven by lower sales of imported cars, a sign that consumers are feeling the squeeze as rising fuel costs continue to impact.
The Fort Lauderdale, Florida-based company sold 16,347 vehicles in May.
Domestic vehicles, like GM, Ford and Chrysler, comprised 36.7% of total sales, while premium luxury vehicles, like Mercedes, BMW and Lexus, made up 19.8% of sales, and imported cars, primarily Toyota, Honda and Nissan, accounted for 43.5% of total sales.
The sale of domestic units increased 3% in May compared to the same period of last year, while premium luxury vehicles saw a 1% increase year-over year.
The core imported cars segment, however, found a 30% decrease in units moved throughout the month.
Toyota, Honda and Nissan, which made up over 50% of sales in the company's first quarter, ending March 31, are each based in Japan, where the auto industry has been taking a brutal beating due to devastating earthquake in March, which has impacted manufacturing.
Mike Jackson, chairman and CEO, had said in April that the company was expecting to see a significant reduction in vehicle shipments from Japanese manufacturers through year-end.
AutoNation, which owns and operates 247 new vehicle franchises across 15 U.S. states, saw a 0.72% drop in its shares following the news of the less-than-stellar sales month, trading at $34.26 per share on the New York Stock Exchange on Thursday morning.
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