U.S. Car Sales Rate Jumps to 7-Year High

Passenger vehicle sales in the U.S. surged 11% year on year to 1.61 million units in May, led by hefty increases for domestic and Asian brands.

Last month's annualized sales rate of 16.8 million units compares with 15.8 million for May 2013. It was the highest monthly pace since February 2007, according to Autodata Corp.

Sales of traditional domestic brands rose 10% to 729,200 units. Volumes advanced 13% to 284,700 units at General Motors, 3% to 253,300 at Ford and 17% to 189,700 at Chrysler. Gains at Chrysler were driven by strong demand for light trucks (+36%), which outsold cars (-27%) by more than four to one.

Sales by Asian carmakers climbed 14% to 743,900 units as all eight companies posted increases: Toyota (17% to 243,200 units), Honda (9% to 152,600), Nissan (19% to 135,900), Hyundai (4% to 70,900), Kia (15% to 60,100), Subaru (11% to 44,200), Mazda (23% to 29,700) and Mitsubishi (0.5% to 7,300).

Results were again mixed for European brands, whose combined sales grew 9% to 135,600 units). Sales by segment leader Volkswagen plunged plunged 15% to 32,200 units, marking the brand's 14th consecutive monthly decline. Demand also fell at Mini (-4% to 5,700) Volvo (-21% to 5,000 units), Jaguar (-9% to 1,300).

European marques reporting increases included BMW (17% to 29,600), Mercedes-Benz (9% to 28,900) Audi (26% to 16,600), Fiat (18% to 4,800) and Land Rover (28% to 4,500).