The past week witnessed automakers releasing their U.S. auto sales report for May 2018. In May, vehicle sales in the United States increased by an estimated 2%. Low unemployment and robust consumer confidence reduced the impact of rising interest rates and fuel prices, and resulted in the rise in auto sales.
Robust Memorial Day weekend sales also boosted retail auto deliveries.Automakers reported mixed US sales results for May. Ford Motor Company’s Fsales increased 0.7% to 242,824 units. Moreover, Fiat Chrysler Automobiles N.V.’s FCAUU.S. sales climbed 11% to 214,294 units. Among the Japanese automakers, sales of Honda Motor Co., Ltd. rose 3.1% while Toyota Motor Corp. and Nissan Motor Co., Ltd. declined 1.3% and 4.1%, respectively.
Also, the week saw Navistar International Corp. NAVand Thor Industries, Inc. THOcoming out their earnings results. While Navistar reported an earnings beat, Thor came out with an earnings miss.
(Read the previous roundup here: Auto Stock Roundup for May 31, 2018)
Recap of the Week’s Most Important Stories
1. General Motors Co. GMhas announced that Tokyo, Japan-based SoftBank Group Corp will invest $2.25 billion in GM Cruise Holdings LLC, the autonomous-vehicle unit of the carmaker. This is one of the biggest investments in the self-driving car front. This investment, made through SoftBank’s $100-billion Vision Fund, will enable the auto giant to deploy self-driving vehicles in a big way.
However, General Motors views electric and autonomous vehicles as the basis of future transport. The automaker is aiming to roll out self-driving vehicles since its $1-billion acquisition of the startup, Cruise Automation, in early 2016. Presently, General Motors holds a sizable stake in Uber’s rival Lyft.