Last Auto News – June Auto Sales Show Signs of Slow Rebound
Last Auto News –
USA Today reports, “June car sales were bad – 28 percent lower than a year ago – but industry executives say they think the market has hit bottom and will continue to inch up as the year progresses.” June sales results show “the first month since September that sales have fallen less than 30 percent.” Nissan North America Vice President Al Castignetti told USA Today, “What we’re seeing is stabilization..
The results were less impressive than some analysts had hoped. If Americans bought cars all year long at the pace we bought them in June, the result would be “a weaker-than-expected annual selling rate of 9.7 million vehicles,” according to the Detroit Free Press. “That was down 28 percent from June 2008, and 7 percent lower than May’s annual pace of 9.9 million.” June marked the sixth straight month that the annual rate has been below 10 million, “a trend that is worse than the depths of the 1979-81 recession.”
But signs of a slow recovery are visible. The Los Angeles Times notes, “Ford Motor Co., the nation’s second-largest automaker, led the way, with a modest 11 percent decline in sales in June, compared to a year earlier, its smallest slide in over a year.” General Motors and Toyota both “saw more substantial dips, of 34 percent and 32 percent, respectively,” but “both showed improvement over recent months’ dismal results, among the worst in their histories.”
Chrysler’s first post-bankruptcy sales report was not encouraging, showing a 42 percent drop for the month. But CNN Money reports, “Much of that decline was due to a 95% drop in fleet sales while plants were shut down. Chrysler said sales to retail customers fell only 16% in June.” Honda and Nissan both saw sales declines of less than 30 percent, with BMW showing a relatively small decline of 20 percent.
Some buyers may have stayed out of the market, waiting for Congress to act before they spent money. The Detroit News explains, “Sales sputtered in late June as prospective buyers waited for the government to introduce its cash-for-clunkers incentives.” The Cash for Clunkers program, which will offer Americans up to $4,500 toward the purchase of a new car when they turn in an older, less-efficient car, may push July sales up. Similar programs have helped to spur auto sales in several other countries.
For details on how to qualify for the government’s program, see our Cash for Clunkers FAQ.
Meanwhile, credit woes continue to affect sales. Michael DiGiovanni, head of sales analysis for General Motors, told the Free Press that “stricter credit standards are cutting the annual selling rate by 1.5 million to 2 million, enough to make the difference between losing money and making a profit for some companies.”
There are already some impressive deals offered in July, for those still shopping. If you’re in the market for a new car, check out the U.S. News summary of the month’s best car deals.
