Q2 vehicle sales slump as expected

Second-quarter vehicle sales from major OEMs are providing a glimpse at the extent of the continued fallout of COVID-19 on the automotive industry. Despite optimistic outlooks for recovery in June, most manufacturers recorded double-digit year-over-year declines in the second quarter, even as many crossover, SUV and truck models gained traction, according to multiple sales reports. The Detroit 3 — General Motors , Ford Motor Co. and Fiat Chrysler Automobiles — all cited positive performance in the industry’s three most popular segments, but those gains were unable to offset sales declines in other segments. General Motors, for one, posted a 34% year-over-year decline on total vehicle sales, although “full-size pickup truck sales performed exceptionally well,” according to a company release. Retail sales dropped 24%, “in line with industry,” the sales report noted. Ford Motor Co. too, clocked in a 33.3% YoY decrease is total sales, but retail sales were only down 14.3%, which outpaced most of the industry, according to a release. Sport-utility vehicle Ford Explorer and the Ford Ranger, a midsized truck, recorded a positive YoY sales trajectory for the quarter, coming in at 12.4% and 19.8% respectively. Ford unveiled a new incentive program this week allowing consumers to return their vehicles in the event of a job loss to help boost sales. Of the three American automakers, Fiat Chrysler Automobiles recorded the worst decline in the second quarter: 39% YoY, partially offset by stronger than expected sales in May and June. Sales for the Jeep Gladiator pickup truck recorded a 174% YoY increase in sales during the second quarter. "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,” said FCA Head of U.S. Sales Jeff Kommor in a statement. Of the imports, Nissan Motors faired the worst, recording a 49.5% decline in total sales during the second quarter. Year to date, the OEM is trailing 39.3% behind the 2019 sales numbers. Toyota Motor ’s sales were down 34.6% YoY for the quarter, and 22.4% year to date. American Honda ’s sales performance in the second quarter dipped 27.9% below last year’s figures, but only 15.5% for the month of June on a YoY basis. Similarly, Hyundai Motor Co. ’s second-quarter total sales dropped 24%; yet, retail sales in June grew 6% YoY “despite the ongoing economic challenges” for the second straight month, according to the Korean automaker’s sales report. Subaru Motors , which doesn’t break out its quarterly sales figures, recorded a 12% YoY decline in June. Its crossover Forester model propped up declines in other segments, growing 31.1% YoY. Finally, Mazda Motor Co. was the big winner in June. The Japanese multinational automaker saw a 10.9% increase in total sales, led by its crossover model CX-9, which recorded a 48.9% increase. June vehicle sales had been forecast to be down 24% across the industry compared with 2019, according to a June 25 report released by TrueCar ALG . Looking forward, the coronavirus is expected to continue shaking up usual seasonality in the industry. “We do not believe that ‘normal seasonality’ will probably apply for the rest of the year, especially with tax season being deferred to July,” said Nick Woolard, director of OEM and affinity partner analytics for TrueCar. Auto Finance Summit, the premier industry event, returns October 20-22, 2020, as a virtual experience. The virtual experience will offer the same quality networking and education as past events, all through an online platform. To learn more about the 2020 event and register, visit www.AutoFinanceSummit.com .

Q2 vehicle sales slump as expected

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