U.S. Demand Jumps 16% for European Brands

Carmakers sold 1.33 million cars and light trucks in the U.S. last month compared with 1.06 million units in May 2011. Volume was driven by strong increases among U.S., Asian and European brands.

Europe-based companies posted a 16% increase in sales to 122,000 units. Volume was led by strong results for the four best-selling brands: Volkswagen (+28% to 38,700 units), BMW (+7% to 22,200 units), Mercedes-Benz (+21% to 24,600 units) and Audi (+10% to 11,500 units).

May sales rose 6% to 6,200 units at Mini but fell 15% to 6,200 units at Volvo. Sales jumped to 4,000 units from 1,800 units for Fiat, thanks to growing demand for the Fiat 500 city car.

Major Japanese carmakers reported huge increases compared with year-earlier levels, when production was badly hurt by Japan's earthquake and Thailand's flooding. Sales jumped 87% to 203,000 units at Toyota, 48% to 134,000 units at Honda and 21% to 91,800 units at Nissan.

May volume rose more modestly for South Korean-based Hyundai and Kia, whose output a year earlier was barely affected by Asia's natural disasters. Hyundai sales in the U.S. climbed 13% to 67,000 units, and Kia boosted volume almost 5% to 51,800 units.

American bought vehicles last month at an annualized rate of 13.8 million units compared with 11.7 million a year earlier, according to Autodata Corp. May's pace, the slowest so far this year, compares with 14.4 million in March and April.