Despite Deals and Covid-19 Stimulus sar, sales fell by a record amount. But due to factory closings and stimulus offers, dealer inventories are lower than normal.
Second quarter sales decline
Car sales in the second quarter have declined by about a third, according to the Wall Street Journal.
General Motors Co. reported a 34% drop in second-quarter sales compared to the previous year, and demand picked up in May and June. Toyota Motor Corp. sales fell by about a third, while Fiat Chrysler Automobiles reported a 39% decrease.
The drop was not as steep as feared, and sales have steadily improved since the end of March. Strong sales promotions and federal stimulus controls that were sent to millions of Americans this spring fueled demand for cars despite rising unemployment and orders to stay home in many states, dealers and analysts say.
In recent weeks, retail sales, or sales to individual buyers, have been just 4-6% below pre-Covid-19 forecasts, according to research firm JD Power.
“The market and the retail consumer continue to recover beyond everyone’s expectations.“Bob Carter, Toyota head of sales for North America, said recently.
Summer test coming
Large incentives with stimulus check flight led to a “33% recovery” beyond anyone’s expectations.
OK. Let’s look at the consumer encore and fleet sales amid a Hertz bankruptcy.
If dealers return to early inventory levels, there will be a rebound in manufacturing.
In the meantime, reflect on changes in consumer spending.
Recovery will take many forms, none
Cars are another example of why The Recovery will take many forms, not one.
Mish
