VW sales advance in May, outpacing most automakers

Chattanooga's Volkswagen plant is visible in this file photo.
Chattanooga's Volkswagen plant is visible in this file photo.

Hardey Stevens of Chattanooga said Tuesday he has never owned a Volkswagen, but he's willing to check out the German automaker the next time he has that car-buying feeling.

"It seems like they've got some nice cars," he said.

Volkswagen of America's sales powered ahead by 8.1 percent in May over a year ago, the largest single monthly gain for the carmaker since December 2012, when sales rose 35.4 percent, figures show.

For a change, VW's monthly increase led all the major car companies except Subaru, which saw sales climb 12 percent. Total sales of vehicles in the U.S. rose 2 percent in the month to more than 1.64 million cars and trucks, the fastest pace since July 2005, according to Autodata Corp.

photo Michael Horn, CEO, Volkswagen Group of America, is pictured with the Golf and Golf GTI in this contributed photo from VW.

Hamilton County sales

New trucks and cars titled in the county were off slightly in May over a year ago. Below are monthly totals for the year and percent change from 2014: * May: 1,067; down less than 1 percent * April: 1,141, up 3.7 percent * March: 993, down 4.8 percent * February: 850, up 7.1 percent * January: 1,125, up 3.7 percent Source: Hamilton County Clerk's Office

Analysts had expected sales to fall slightly because of lower sales to rental car companies and other auto fleets.

In Hamilton County, May registrations of cars and trucks fell slightly to 1,067. But year to date, sales are up 1.6 percent in the county, figures show.

Volkswagen of America's monthly total of 34,758 vehicles in May was its best sales mark by units since August 2014, when it sold 35,181 cars and SUVs.

Sharp sales increases in VW's Golf family coupled with robust movement of its SUVs off dealer lots drove the May figures, according to VW.

In May, Golf sales totaled 6,308 units, the best for that lineup since 2000. The new all-electric e-Golf delivered 410 units for the month, its highest month ever.

The Touareg SUV, refreshed for 2015, recorded sales of 700 units, up 26.8 percent from a year ago. The smaller Tiguan SUV posted sales of 3,079 units, up 16.2 percent.

But sales of the Chattanooga-made Passat midsize sedan came in at 8,180, down 8.7 percent in the period.

Christian Koch, who heads Chattanooga's VW operations, said that a new Passat with its first facelift since U.S. production began in 2011 will debut this fall.

"It's a beautiful car," said Koch, who wouldn't give away how much of a difference car buyers will see.

For the year through May, VW's total U.S. sales are off 4.2 percent at 144,006.

"We are encouraged by the performance of the Golf family, delivering the best May in 15 years," Mark McNabb, chief operating officer for Volkswagen of America, said in a statement Tuesday.

Among all carmakers, analysts had expected sales to fall by around 1 percent, but Tuesday's reports beat expectations.

General Motors' sales in May rose 3 percent over a year ago, Fiat Chrysler was up 4 percent and Honda rose 1 percent.

Automakers benefited as buyers continued a steady shift from cars into small- and medium-sized SUVs.

Honda sold more than 6,300 HR-V small SUVs in the first two weeks it was on sale. Sales of the GMC Acadia SUV jumped 67 percent, while sales of the Jeep Cherokee were up 23 percent. Sales of Subaru's XV Crosstrek small SUV jumped 36 percent.

Ford's sales fell 1 percent. Nissan and Toyota said sales were flat.

The Associated Press contributed to this story.

Contact Mike Pare at mpare@timesfreepress.com or 423-757-6318.

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