Providers and Administrators in blue logo
MenuMENU
SearchSEARCH

Detroit Auto Makers Topped Importers in Sales in May

June 1, 2011
4 min to read


DETROIT — The steady recovery in auto sales stalled in May, as more consumers stayed away from new-car showrooms because of higher prices, shortages of some Japanese models, and concerns over the economy.


Automakers said that sales dropped 3.7 percent during the month compared with the period a year earlier. Analysts said the closely watched, seasonally adjusted annual selling rate in May was just 11.8 million vehicles, the lowest level reported since last September, reported The New York Times.

Ad Loading...


While May was the worst month for sales so far this year, auto executives said they still expected overall sales in the United States would exceed 13 million vehicles for the year. However, the slowdown could continue into the summer before the pace picks up again. “We do believe the economy will continue its slow and gradual recovery,” said Don Johnson, General Motors’ vice president for United States sales operations.


The hardest hit of the auto companies in May were Toyota and Honda, which said that production disruptions from the Japanese earthquake had caused shortages of some models at dealerships.


Because of Japanese automakers’ setbacks, Detroit’s Big Three — G.M., Ford and Chrysler — ranked first, second and third in terms of sales in the United States for the first time since 2006. Last year, Toyota had ranked third.


But Toyota’s sales dropped 33 percent, allowing Chrysler, whose sales rose 10 percent, to climb into third place. G.M.’s sales slipped more than 1 percent during May, and Ford’s were flat.


And for the first time, the Hyundai Kia Automotive Group, of South Korea, outsold Honda, which reported a 23 percent decline.

Ad Loading...


Tight inventories and an unusually low level of discounts combined to keep many consumers out of the market during the month. Analysts said it appeared that shoppers had decided to hold off in the hopes of finding better deals or a wider selection.


“Some buyers looked at the reports or maybe heard something about it and decided to wait instead of going down to the showroom and look,” said Jeff Schuster, executive director of global forecasting at the research firm J. D. Power & Associates.


G.M. said its overall sales decreased by 1.2 percent, but that its passenger-car sales rose by 13 percent.


Ford reported a 0.3 percent decline, which excluded sales of the Volvo brand it no longer owns. The company said that small cars and crossover vehicles accounted for 27 percent of its volume, up from 19 percent a year ago.


Some carmakers bucked the trend and reported large gains. Kia’s sales rose 53 percent, to a monthly record of 48,212, and Hyundai’s were up 21 percent. The German carmaker Volkswagen said sales rose 24 percent and that May was the company’s best month in nearly eight years.

Ad Loading...


But across the industry, sales were down after increasing about 20 percent from January through April.


Toyota and Honda are still trying to recover from the earthquake that struck Japan in March. Both companies have said they expect to resume normal production levels later this summer.


Toyota is “well ahead of our recovery plans,” said Robert S. Carter, the company’s top United States sales executive.


While Toyota and Honda said their plants were building more vehicles, many of their most popular and most fuel-efficient models have become scarcer, causing consumers to look at other brands or put off shopping until inventories can be restocked.


“Toyota and Honda lost significant market share in May after cutting their incentives drastically to preserve inventories,” Brian A. Johnson, an analyst with Barclays Capital, wrote in a report to clients. “This strategy appears to have somewhat backfired on them, and Toyota had to raise incentives back midmonth in order to limit the damage.”

Ad Loading...


Incentive spending by automakers, which included cash-back rebates, subsidized financing rates and other deals, was down. TrueCar.com, a site that tracks vehicle sales and pricing, said incentives fell in May to the lowest level in nearly nine years.


At the same time, automakers have been raising prices to compensate for higher raw material costs; Ford this week announced the third price increase for its lineup this year. In addition, dealers have been able to charge more for many models with high fuel economy.


Both Ford and G.M. reported gains in sales of their smaller cars as consumers gravitated to vehicles with good fuel economy.


But auto companies do not expect consumers to pull back on spending as drastically as they did in 2008, when higher gas prices cut deeply into sales.


Since then, automakers have adjusted production to build more small cars and fewer pickup trucks and large sport utility vehicles. G.M. and Ford, in particular, have benefited from having more fuel-efficient cars.

Ad Loading...


“Customers increasingly are demanding new products that deliver compelling fuel economy,” Ken Czubay, Ford’s vice president for United States marketing, sales and service, said.


G.M.’s Chevrolet Malibu was the top-selling passenger car in the country in May, the first time in nearly three years that a Detroit model outsold perennial market leaders like the Toyota Camry, Honda Accord and Nissan Altima.


In fact, 8 of the top 10 vehicles sold in May were made by the Detroit companies. Despite a 15 percent decline in sales from a year earlier, Ford’s F-Series pickup was still the best-selling model over all.

More Industry

Blurred photo of red car moving down a road
Industryby Hannah MitchellMarch 31, 2026

Automakers Have More Tricks Up Their Sleeves

JD Power analysts see auto retail faring this year’s storms well through various means, though it acknowledges conditions are challenging to accurately predict.

Read More →
background view of Washington D.C. with the capitol building and cherry trees. Text says 'What's the Cost?' with two diverging arrows and the Providers and Administrator's logo
Industryby Lauren LawrenceMarch 31, 2026

Insurance Rates Continue to Fall

Car insurance premiums have continued to decline so far this year, the overall national average settling at $138 per month in March, according to Insurify data.

Read More →
Bar graphic showing car segment activity for the previous week
Industryby StaffMarch 31, 2026

Black Book: Weekly Market Update

Last week's wholesale auction activity was stable, though buyers exercised selectivity as they focused on certain segments.

Read More →
Ad Loading...
gray background with white text that says Dealer Debrief 03/25/2026 with Lauren Lawrence. picture of a white woman (Lauren) with red hair
Industryby Lauren LawrenceMarch 25, 2026

Dealer Debrief: Safety, Supply & Partnership

In this week's Dealer Debrief, host Lauren Lawrence covers a new safety assessment, current inventory issues, and a new payables process for dealerships.

Read More →
Line chart depicting retail used-vehicle auction volume
Industryby StaffMarch 24, 2026

Black Book: Weekly Market Update

Both conversions and values were up last week, though business was spotty depending on the segment in question.

Read More →
red battery-electric vehicle using a Tesla Supercharging station
Industryby Lauren LawrenceMarch 24, 2026

Stellantis Expands Charging Network

Five of its brands now have greater access to battery-electric vehicle charging through Tesla’s Supercharger network across North America.

Read More →
Ad Loading...
blue subaru crosstrek in city with Save with SUVS text and Providers and Administrators logo
Industryby Lauren LawrenceMarch 17, 2026

Safety Drives Insurance Rates

Sixteen out of the 20 cheapest vehicles to insure in 2026 are SUVs, according to CarInsurance.com, largely because of their safety features and lower repair costs.

Read More →
Close-up photo of the front of a new-looking white car
Industryby Hannah MitchellMarch 17, 2026

New-Vehicle Shoppers Get Some Relief

Overall conditions in February tipped slightly in consumers’ favor as prices stayed high, granting a reprieve of sorts just before the war on Iran commenced and started to reverse the welcome trend.

Read More →
row of cars, used vehicle demand spikes, chart showing data spike, F&I and Showroom logo
Showroomby Lauren LawrenceMarch 11, 2026

Used Market Gains Speed

New-vehicle sales fell year-over-year for the fifth month in a row in February, making retail deliveries the slowest they’ve been since 2023, according to a CarGurus report.

Read More →
Ad Loading...
text reading Auto Loan Defaults Reach 2% on desk background with car keys, calculator, notepad, and toy car
Industryby Lauren LawrenceMarch 10, 2026

Auto Loan Defaults Measured Amid Inflation

According to LendingTree data, the average monthly auto loan payment was $540 in the fourth quarter, and the average credit score for those with a recorded default was 529.

Read More →