Coronavirus Reports Second Quarter US Auto Sales for GM, FCA

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The cars are placed in a dealership lot on the first day that dealers are allowed to open to the public on May 20, 2020 in Linden, New Jersey.Spencer Platt | Getty Images

Vehicle sales in the second quarter in the United States for General Motors, Toyota Motor and Fiat Chrysler fell more than 30% as the coronavirus forced consumers to stay at home and dealers and factories to close.The steep declines are in line with what Wall Street expected. Hyundai Motor and Porsche also recorded a significant drop in sales between April and June compared to the previous year. Auto makers were among the first to report second-quarter sales on Wednesday.

Vehicle sales in the United States are expected to drop about 34% in the second quarter, according to automotive research companies Edmunds and TrueCar’s ALG. The second quarter is expected to be the worst year for automakers due to the pandemic.

Year over year, GM announced a 34% drop in second quarter sales, while Fiat Chrysler said sales fell 38.6%. Toyota said sales fell 34.6% in the three months ended Tuesday compared to a year ago.

Fiat Chrysler shares fell more than 3% during late Wednesday trading. GM’s shares were slightly in the red. Toyota’s inventory fell just over 1%.

GM and Fiat Chrysler said that sales of full-size pickups had performed exceptionally well and that overall sales were showing signs of recovery, particularly deliveries to retail customers.

“GM entered the quarter with very little inventory and our dealers have done a great job of meeting customer demand, particularly for pickup trucks,” said Kurt McNeil, GM’s US vice president, Sales Operations , in a press release. “Now we are filling the pipeline by quickly and safely bringing production back to pre-pandemic levels. “

Jeff Kommor, U.S. sales manager for Fiat Chrysler, said retail sales to consumers had rebounded from their lows in April, but that fleet sales to governments and businesses have been canceled or delayed.

“This quarter demonstrated the resilience of the American consumer,” Kommor said in a statement. “Retail sales have rebounded since April as the reopening of the economy, stable gas prices and access to low-interest loans are driving people to buy. He said the company has built “a solid fleet order book” that will support sales in the second half.

Fleet sales were expected to come to an abrupt halt for many automakers in the first half of the year, as companies cut costs and some found it hard to stay afloat. This includes the car rental sector, highlighted by the bankruptcy of Hertz.

Most major automakers are expected to report June or second quarter sales on Wednesday, providing another glimpse of how the coronavirus paralyzed the auto industry in the first half of the year.

Car manufacturers in the United States have stopped production of vehicles and other countries due to the pandemic. They also cut or postponed the salaries of senior managers and white-collar workers and withdrew the guidelines for the year.

Other automakers reporting June or second quarter sales include:

  • Toyota announced that overall second quarter sales were down 34.6%, including a drop of 17.7% in June.
  • Hyundai’s second quarter sales fell approximately 23.7% to 141,722 units from a year ago, including a decrease of 21.9% in June.
  • Porsche announced that second quarter sales dropped 19.9% ​​to 12,192 vehicles, driven by a 30.1% increase in its 911 models.

Most American, European and Asian automakers are announcing second quarter auto sales on Wednesday. This article will be updated periodically as they publish their results.

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