ALEXANDRIA, Va. -

As a domestic nameplate enjoyed its best May in three years, foreign brands slid down somewhat as overall new-vehicle sales softened a bit.

Based on tallies from AutoData Corp. cited in a report from the American International Automobile Dealers Association, May sales actually finished down 3.7 percent from the same month last year. The sales performance also marked an 8.3-percent softening from April.

AutoData estimated the seasonally adjusted annual rate for light vehicle sales in May to be at 11.8 million units, up from 11.64 million units in May 2010.

AutoData also said year-to-date sales also are 14 percent higher.

Officials added that the average transaction price among all automakers rose 2.1 percent in May to hit an all-time high of $29,817.

Chrysler Enjoys Best May Since 2008

Chrysler Group determined that it sold 115,363 units in May, a 10-percent increase compared with sales in May of last year when the automaker moved 104,819 units. The OEM said it was also the best May sales since 2008.

Chrysler believes its all-new or significantly-refreshed 2011 models continue to drive monthly sales gains.

Officials said the new 2011 Chrysler 200 mid-size sedan, the all-new 2011 Dodge Durango SUV, the all-new 2011 Jeep Grand Cherokee and new Jeep Compass and the new 2012 Fiat 500 all significantly contributed to the automaker’s 10-percent sales increase in May.

The OEM determined that sales of the Chrysler 200 were up 154 percent in May, compared to the model’s previous generation. The company went on to mention all Jeep brand models posted year-over-year sales gains in May, led by the Jeep Grand Cherokee’s 192-percent sales increase.

Chrysler added that it finished the month with a 65-day supply of inventory (311,453 units).

“Chrysler Group just posted its 14th consecutive month of year-over-year sales gains, confirmation that our 2011 models continue to resonate with consumers,” highlighted Fred Diaz, president and chief executive officer of Ram Truck Brand and lead executive for U.S. Sales.

“Our retail sales were up 27 percent in May, driven in large part by our new models. Ram pickup trucks and all of our Jeep brand models posted sales increases in May, despite high, fluctuating gas prices,” Diaz added.

Chevrolet Celebrates Cruze Success

For the first time in five years, an American vehicle is the best-selling compact car in the United States, according to General Motors.

Chevrolet recorded 22,711 sales of its Cruze, pushing the model to the top of the segment in May. The brand’s compact model also achieved its second consecutive appearance on the Top 10 across all U.S. auto segments.

The Cruze also has helped Chevrolet gain share in the compact segment, which represented 16 percent of total U.S. sales in May, according to GM. The performance also accelerated the brand’s shift to fuel-efficient four-cylinder engines.

In May, fuel-efficient, four-cylinder vehicles – including Cruze, Equinox and Malibu – accounted for 51 percent of Chevrolet retail sales. That is up from 36 percent in May a year ago, and doubles the rate of four-cylinder sales five years ago.

“The launch of the Cruze has exceeded all of our expectations,” noted Alan Batey, U.S. vice president for Chevrolet sales and service. “Cruze launched as a brand-new vehicle, with a brand-new name, in one of the most competitive segments in the industry.

“Today, Consumer consideration for the Cruze has increased to the point that it is on many of the same shopping lists as established compact cars, like Civic and Corolla,” he said. “This is an incredible accomplishment, even considering the industry’s disruptions caused by the tragedy in Japan.”

GM pointed out the Cruze trails only the Honda Civic in sales for the 2011 calendar year.

AIADA Highlights Foreign Nameplate Performance

AIADA noted in its report that foreign brands experienced mixed results in May as a result of interruptions in production caused by March’s Japanese earthquake and subsequent cuts in incentives

AIADA determined international brands’ sales finished down 0.9 percent from May of last year, the first drop since last August.

However, the association pointed out sales by foreign brands are still up 12.2 percent year to date.

While dropping as a whole, AIADA highlighted that some of the biggest gains last month were seen by Korean automakers Hyundai (up 20.7 percent from a year ago) and Kia (up 53.4 percent) and Germany’s Volkswagen (up 27.9 percent).

Meanwhile, the association acknowledged Japanese automakers saw sales drop across the board, with Toyota slipping 31.7 percent.

AIADA president Cody Lusk remained upbeat about foreign nameplate’s future sales prospects.

“Falling sales caused by inventory issues are a temporary setback,” Lusk insisted. “Demand for new cars remains high, and dealers expect both production and sales to return to normal levels very soon.”

Despite Supply Issues, International Brands Hold Majority Market Share

AIADA kept the tone upbeat by mentioning that international brands finished May with a majority share of the U.S. market at 50.4 percent. That hold was down, however, from 53.5 percent in April and 56.6 percent in March.

Because of production constraints faced by Toyota, Honda and Nissan, the association noted how Asian brands have watched their market share slide from 44.9 percent in April and 43.3 percent in March to 40.5 percent in May.

But European automakers are on the upswing as AIADA said these companies captured 9.9 percent of the market in May, up from 8.6 percent in April and 8.1 percent in March.

As far as the number of units sold, AutoData’s figures indicated domestic brands sold 526,325 units, finishing May with 49.6 percent of the market and representing a 1.2 percent increase over May of last year.

Officials added that Asian nameplates sold 430,503 vehicles in May, down 13.4 percent from a year ago, while European brands moved 104,891 units, a figure 22.7-percent higher than the same month in 2010.

May’s Top-Selling Vehicles

AIADA said six of the top 10 selling vehicles were cars, suggesting a strong buying trend toward fuel-efficient vehicles. The association added seven of the top ten vehicles experienced year-over-year sales improvements by an average of 16.2 percent.

This contingent of models included the Chevrolet Malibu and Cruze, Nissan Altima, Ford Fusion and Focus, Hyundai Sonata and the only non-car unit of this bunch, the Ford Escape.

Despite rising fuel costs, the top two selling vehicles in May were pickups, the Ford F-150 and Chevrolet Silverado. The Toyota Camry — what AIADA believes typically is the top-selling model — fell to No. 12.

Vehicle Segment Analysis

AIADA insisted Americans continued to prefer vehicles from the SUV/crossover segment, which occupied a 61.8 percent share of all vehicles sold in May. The segment was down by 0.9 percent, however, with sales of 318,359 units.

The association also mentioned all vehicle segments were down from May of last year with the exception of the small car segment which sold 196,498 units and was up 2.5 percent.

AutoData’s May information showed Asian nameplates sold 267,006 cars and 163,497 trucks, while European brands sold 75,824 cars and 29,067 trucks. Domestic nameplates sold 203,857 cars and 322,468 trucks.

Edmunds Projects When New Sales Return to Pre-Recession Levels

Looking well into the future, Edmunds.com’s five-year forecast of U.S. automotive sales says the industry will continue on a steady pace of recovery, but sales won’t return to pre-recession levels before 2016.

The site anticipates new-vehicle sales will climb to 15.85 million in 2015, falling short of the benchmark of 16.1 million sales in 2007, the last full year before the U.S. economy fell into a recession.

On average, analysts noted 11.7 million units have been sold in the U.S. in each of the last three years, and they predict 2011 sales will reach 12.9 million.

Edmunds.com Auto Sales Forecast for 2011 to 2015 is as follows:

—2011: 12.9 million.
—2012: 13.9 million.
—2013: 14.65 million.
—2014: 15.25 million.
—2015: 15.85 million.

“In the past six to eight months, an increasing number of signs suggest that economic fundamentals are improving, and these factors are contributing to rising auto sales momentum,” explained Lacey Plache, chief economist at Edmunds.com.

“We expect this momentum to continue but at a moderate pace given the fundamental steps that are still needed for a full economic recovery," Plache continued.

“For example, at the current rate of roughly 250,000 jobs added per month, it will take nearly two and a half years to recover the 7 million jobs needed to reach pre-recession employment levels, which do not include jobs needed to accommodate population growth,” Plache went on to say.

In addition to unemployment, Plache noted that other economic factors are keeping new-vehicle sales from recovering as fast as they fell. Those factors include the continuing housing crisis and tighter lending standards.

As a result, consumers are holding on to vehicles longer and average vehicle age is increasing.

Just last week, Edmunds.com reported that supply disruptions stemming from the March earthquakes in Japan led to a decline in May sales. But Japanese automakers are reporting accelerated improvements in production, so the site thinks any effect on U.S. auto sales will not likely linger much past the summer.

Still, Edmunds.com CEO Jeremy Anwyl contends that domestic automakers have a “once-in-a-generation opportunity” to boost their reputations and cut into their Japanese competitors’ market shares.