Strong truck demand drives U.S. auto industry to April rise

DETROIT (Reuters) - General Motors Co and Ford Motor Co both reported stronger-than-expected U.S. auto sales in April on Friday as robust demand for trucks, and crossover and sports utility vehicles kept the industry on track for its best year in almost a decade.

GM sales rose 6 percent, Ford's were up 5.4 percent and Fiat Chrysler Automobiles gained 5.8 percent. Nissan Motor Co <7201.T> and Toyota Motor Corp <7203.T> increased 5.7 percent and 1.8 percent, respectively. Fiat, Nissan and Toyota all missed expectations.

The sales results were largely in line with estimates for the market as analysts polled by Reuters expected overall industry sales to rise 6 percent.

?Consumer and commercial customer demand for pickups and utility vehicles has been building since last fall,? said Kurt McNeil, GM?s U.S. vice president of sales operations. ?The auto industry continues to be on track to have its best sales year since 2006.?

U.S. industry sales slipped to 16.5 million vehicles in 2006 from almost 17 million the prior year, and fell as low as 10.4 million in 2009 amid the recession, before beginning to climb.

Ford officials said industry average transaction prices in April were up $1,000 from last year to $31,200 per vehicle, and dismissed concerns about longer loan rates, with some now reaching 84 months.

Ford's U.S. sales chief Mark LaNeve said the increase in duration has been driven by buyers with good credit scores stretching to buy more premium vehicles, rather than by consumers with high-risk credit.

Auto sales are an early monthly snapshot into consumer demand. GM expects the industry's annual sales rate in April was 16.7 million vehicles, compared with 16.05 million last year.

Sales of higher-profit pickup trucks and SUVs have been strong this year at the expense of smaller cars amid lower gasoline prices and easy consumer credit.

?Light truck sales have carried the auto industry to its best start in 15 years,? said Bill Fay, group vice president for Toyota U.S. sales.

GM's sales rose to 269,056 vehicles as truck and crossover sales rose 13 percent and 25 percent, respectively. Large SUV sales fell, due more to limited availability because of sustained high demand. Sales of GM's Cadillac Escalade large SUV, one of its most profitable vehicles, rose 144 percent to 3,237.

Ford's sales hit 222,498 vehicles as retail sales rose 7 percent. Ford-brand SUVs had their best April ever, with sales up 12.3 percent while retail sales of the new F-Series pickup truck increased 8 percent, and its average sales prices hit an all-time high of $42,600 per vehicle.

The automaker is ramping up production of the redesigned truck through the second quarter, which will allow it to meet fleet demand.

Fiat Chrysler's sales rose 6 percent to 189,027 vehicles as Jeep brand sales jumped 20 percent, the Ram brand was up 4 percent, and pickup truck sales added 3 percent.

Nissan sales totaled 109,848 vehicles as demand for Nissan crossovers, trucks and SUVs set an April record, up 23.7 percent.

(Editing by Jeffrey Benkoe)