(Adds final sales figures, Canada data, closing share prices)
By Bernie Woodall
DETROIT, May 3 (Reuters) - Detroit automakers reported
another month of strong demand from U.S. consumers for trucks
and sport utility vehicles on Tuesday, but their shares dropped
as analysts focused on signs the world's second-largest auto
market has little room to grow.
U.S. light vehicle sales in April totaled 1.51 million, up
3.6 percent from a year earlier, for a seasonally adjusted
annualized rate of 17.42 million vehicles, according to Autodata
Corp. WardsAuto said annualized sales were 17.32
million vehicles.
U.S. auto sales in 2015 hit a record 17.4 million vehicles.
Wall Street analysts say the U.S. auto market is close to a
cyclical peak and that more production cuts, which hurt profit,
could be needed to keep inventories of vehicles from ballooning
later in the year.
"We continue to believe sales growth will be muted this
year," Joseph Spak of RBC Capital said in a note to investors.
Inventory data issued early on Tuesday pointed to some
possible "risk to North American production over the coming
months," Spak added.
The sluggish pace of U.S. economic growth adds to concerns
that the auto industry recovery could run out of fuel.
April auto sales in Canada were the highest for any month on
record, at 200,327 vehicles, consultant Dennis DesRosiers said.
Ford, Fiat Chrysler and Toyota all reported double-digit gains
in Canada.
Shares of General Motors Co (NYSE:GM) GM.N and Ford Motor (NYSE:F) Co F.N
closed down 1.6 percent and 1.4 percent, respectively, as the
broader market also declined, while Fiat Chrysler Automobiles (NYSE:FCAU) NV
FCHA.MI FCAU.N shares fell 3 percent to $7.96.
GM and Ford said sales to individual consumers were still
growing. But because GM has been cutting back on low-profit
sales to rental car companies and other fleets, its overall
April U.S. sales fell by 3.5 per cent.
GM's results were among many that highlighted a divide in
the market between slumping sales of traditional sedans, and
robust demand for pickup trucks and SUVs.
GM said sales of the Chevrolet Silverado pickup truck rose
nearly 9 percent in April compared with a year earlier. However,
sales of GM's Cadillac CTS and ATS luxury sedans plummeted 23
percent and 18 percent, respectively.
Other luxury brands also had weak results in April,
especially for cars. Toyota Motor Corp's 7203.T Lexus division
suffered a 26 percent decline in sales of cars such as the large
LS sedan, although sales of Lexus brand SUVs rose 20 percent.
German luxury car maker BMW AG BMWG.DE said sales of its
BMW brand passenger cars fell 6.5 percent, while its SUV sales
fell 9.7 percent.
The chief executives of two leading auto dealer groups,
AutoNation Inc (NYSE:AN) AN.N and Group 1 Automotive GPI.N , had warned
in April that automakers should start curbing production,
particularly of slow-selling luxury sedans.
Still, April U.S. sales for Ford, Honda Motor Co 7267.T
and Nissan Motor Co 7201.T all beat analysts' expectations.
Ford's sales rose 4 percent from a year earlier, Fiat Chrysler
Automobiles was up 5.6 percent and Toyota Motor Corp 7203.T ,
No. 3 in the U.S. market, rose 3.8 percent. Honda sales rose
14.4 percent.
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Reuters Insider-Auto sales were surprisingly good -KBB's
Lindland http://reut.rs/1rRrTNb
Reuters Insider-Auto sales up, but for how long? http://reut.rs/1rRJ5lI
TABLE-April U.S. auto sales 17.42 mln annualized rate
TABLE-Top 20 selling vehicles in U.S. in April
TABLE-April U.S. light vehicle sales by major automakers
Graphic-U.S. auto sales http://tmsnrt.rs/1YxIb7P
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(Editing by Tom Brown and Matthew Lewis)