U.S. in the third quarter. The recovery of the auto industry gained momentum, with coronavirus-related loos and buyers returning to the show-room from sales by auto manufacturers.
Strong demand for trucks and sport-utility vehicles is leading to a comeback, which is happening much faster than expected this summer. Contributing is the shift to car ownership among urban consumers, as well as easier credit conditions that make car payments more affordable.
Sales at many car companies are still lower than they were a year ago, with analysts saying the pace of sales in September was expected to be closer to what it was earlier this year – before the spring epidemic deal hit a close.
General Motors Co.
G.M. 2.67%
Its third-quarter U.S. sales fell nearly 10% from a year earlier, but fell to a 34% decline posted in the second quarter, while all of its North American factories temporarily protected workers, it said Thursday. Became temporary for. Spread the virus. GMA said its production has largely returned to pre-epidemic levels.
The Detroit auto toe maker has benefited financially from the large pickup truck that has long been its sweet spot, as well as the demand for cost-cutting measures years ago.
Rival Fiat Chrysler om Tomobiles NV also saw a 10% decline in U.S. sales in the third quarter, but a decline from the 39% posted in the second quarter. Ford Motor Co.
Sales in its third quarter on Friday, and numbers from Tesla are expected to be revealed Inc.
Also expected in the coming days.
Car-shopping website Edmunds.com estimates that US auto-industry total sales will still be down 11% in the third quarter, but that is an improvement from the nearly 31% dip in the second quarter.
Demand for this specialty has grown significantly as a result of recent corporate scandals involving disability operators and other businesses that buy vehicles in bulk and are still recovering from the crisis.
The shortage of available vehicles – a halt to car-factory shutdowns this spring – will help car companies and dealers pull back on sales promotions and other discounts as prices rise further.
According to research firm JD Power, car shoppers paid an average of 65 6,6565 for a new vehicle in September, up 6.6% from the same month last year. That trend is helping boost profitability for many dealers, even though sales remain below previous year’s levels.
Jerry Sener dealership in Salt Lake City has achieved one of its best third quarters for both sales and profitability, chief executive Chris Hammersmeier said. Consumers mostly gravitate to new, high-end pickup trucks, which Mr. Hammersmeyer said are still rare.
However, he is concerned that without further government incentives, lower wage consumers will be out of the market by the end of the year due to the economic effects of the epidemic.
“We will still need those customers,” he said.
September sales rose over the Labor Day holiday weekend, with many dealerships offering discounts to attract customers, but overall performance points to strong underlying demand for new vehicles, said Thomas King, president of data and analytics at JD Power. “This is despite the tight inventory of many popular vehicles.”
South Korea’s Hyundai Motor Co.
Among the many automakers leading the industry’s comeback. Hyundai, which recently expanded its lineup to include the popular full-size SUV, said its US sales rose 4.4% in September, compared to a year earlier, and fell just 1% in the third quarter.
Japanese car companies, which currently have less presence in the truck markets than Boomaboom, have been slow to improve. But for some, September was looking.
Toyota Motor Corpo.
TM -0.01%
It said its third-quarter U.S. sales were down about 11% from a year earlier, but it rose 16% in September, driven by the performance of SUV companies such as the Rav4 and Highlander.
Honda Motor Co.
Third-quarter sales fell 9.5%, but automaker September sales rose 12%.
Nissan Motor Co.
, Which relies heavily on fleet business and is under restructuring, saw a 32% decline in third-quarter sales. The company will no longer provide monthly sales figures.
Individual shoppers are flocking to the market again, while sales of rental car companies, fleet managers and businesses, especially Avis Budget Group, have been reluctant. Inc.
And Hertz Global Holdings Inc.,
Whose operation has been hit hard by epidemic-related travel restrictions.
According to Edmunds.com, fleet sales will account for only 11% of new vehicle purchases in the third quarter, compared to July-September 2019.
The last part of the puzzle for the industry’s recovery is fleet sales, Edmunds analyst Jessica Cuddwell said in a written statement. “This side of the business will take some time to make a dramatic comeback like its retail counterparts.”
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