US Automakers' Quarter 2 Sales Shuttered by Coronavirus
Major US automakers saw vehicle sales fall in the second quarter amid the coronavirus pandemic, according to CNBC.
General Motors, Toyota Motor, and Fiat Chrysler vehicle sales decrease by more than 30 percent. The coronavirus pandemic forced consumers and non-essential workers to stay at home. Closed factories and dealerships also added to the mix. Wall Street expected a downturn in vehicle sales. Nissan Motor, Hyundai Motor, and Porsche also reported a decrease in vehicle sales for quarter 2.
Auto research firms Edmunds and TrueCar's ALG expected US vehicle sales to decrease by 34 percent in quarter 2. The second quarter is expected to be the worst period for automakers in 2020.
Year over year, GM reported a 34 percent decrease, Fiat Chrysler reported a 38.6 percent decrease, and Toyota reported a 34.6 percent decrease. All of the stocks closed in the red on Wednesday.
GM and Fiat Chrysler did report that full-size pickup truck sales were the silver lining in the quarter. “GM entered the quarter with very lean inventories and our dealers did a great job meeting customer demand, especially for pickups,” Kurt McNeil, GM’s U.S. vice president, sales operations, said. “Now, we are refilling the pipeline by quickly and safely returning production to pre-pandemic levels.”
“This quarter demonstrated the resilience of the U.S. consumer,” Jeff Kommor, head of U.S. sales for Fiat Chrysler said. “Retail sales have been rebounding since April as the reopening of the economy, steady gas prices, and access to low-interest loans spur people to buy.”
Other automakers second-quarter reports were similar:
- Nissan reported vehicle sales in the second quarter down 49.5 percent.
- Hyundai reported vehicle sales in the second quarter down 23.7 percent.
- Volkswagen reported vehicle sales in the second quarter down 29 percent.
- Porsche reported vehicle sales in the second quarter down 19.9 percent.
- Mazda reported vehicle sales in the second quarter down 9.6 percent.