Fiat Chrysler's U.S. Auto Sales Rise

Fiat Chrysler Automobiles NV on Friday posted a 5.6% rise in April U.S. auto sales, driven by continued demand for its Jeep brand.

After a sluggish start to the year, U.S. light-vehicle sales are expected to regain momentum in April as cheap credit, low gasoline prices and rising consumer confidence helped drive more buyers to showrooms.

Fiat Chrysler sold 199,631 vehicles in the month, compared with 189,027 for the month last year, making it the Italian-U.S. auto maker's best April in 11 years. Jeep brand sales climbed 17% for their best April yet, with the Renegade and Compass logging their best monthly sales ever.

Analysts forecast industrywide sales will rise 5% in April to set a new monthly high and the selling pace will eclipse 17.5-million vehicles, putting the auto industry back on track to beat last year's sales record.

"Following a disappointing March, we expect sales to get back on track in April," said Kelley Blue Book analyst Tim Fleming. "Increased fleet sales and rising incentive spending among auto makers remain the factors to watch, but retail demand appears to be holding steady, signaling the industry's strong run isn't over quite yet."

Car makers benefited from an extra selling day in April, as well as the Easter holiday falling in March, giving them five full weekends of sales. Typically, new-car sales start to pick up in the spring when there is better weather and longer days.

With gas prices hovering at about $2 a gallon, customers continued to snap up pricier trucks and sport-utility vehicles with sales of those models expected to climb 7% in April, according to WardsAuto. Passenger-car sales, meanwhile, are forecast to fall 6% as more shoppers gravitate to roomier vehicles.

For the month, the average transaction price rose an estimated 1.9% to $33,865 for a light vehicle in the U.S., with Detroit auto makers posting particularly strong numbers, according to Kelley Blue Book.

Write to Anne Steele at [e-mail]

(END) Dow Jones Newswires

May 03, 2016 08:55 ET (12:55 GMT)

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