FAST FIVE: US Auto Sales Plunged In Q2 With GM, Toyota, & Fiat Suffering 30% Drops In Sales
US Auto Sales Plunged In Q2 With GM, Toyota, & Fiat Suffering 30% Drops In Sales Tyler Durden Fri, 07/03/2020 – 13:20 US vehicle sales for major manufacturers like Toyota, General Motors and Fiat were all slaughtered in the second quarter of 2020 as the US deals with the brunt of the economic impact from Covid-19 – while already in the midst of an auto recession that we had written extensively about heading into 2020.
GM's sales fell 34% on the nose, Fiat's sales fell 38.6% and Toyota's numbers fell 34.6%. Nissan's reported Q2 sales plunged 49.5% and Hyundai's sales fell 23.7%, including a 21.9% plunge in June.
What hasn't yet returned to the auto industry is the fleet commercial buyer, particularly rental car.
“Cox Automotive is forecasting that fleet sales will fall 56% to 1.3 million vehicles in June, after plunging 83% in May and 77% in April.” In the same piece, we noted that Cox was also predicting that further job cuts could occur if production at US automakers doesn't eventually ramp back up. Zohaib Rahim, economic and industry insights manager at Cox Automotive, said: “If we don't see a rebound in 2021, this will be a problem for automakers.
62% of vehicles sold to fleet buyers in 2019 went to rental car companies. In 2019, fleet sales accounted for about 22% of GM's sales, with about half going to rental fleets and the other half going to corporations and government agencies.