{"id":149792,"date":"2020-07-01T13:25:05","date_gmt":"2020-07-01T17:25:05","guid":{"rendered":"https:\/\/www.thedetroitbureau.com\/?p=149792"},"modified":"2020-07-01T13:34:17","modified_gmt":"2020-07-01T17:34:17","slug":"gm-fca-nissan-suffer-big-drop-in-second-quarter-sales","status":"publish","type":"post","link":"https:\/\/thedetroitbureau.com\/2020\/07\/gm-fca-nissan-suffer-big-drop-in-second-quarter-sales\/","title":{"rendered":"GM, FCA, Nissan Suffer Big Drop in Second-Quarter Sales"},"content":{"rendered":"
\"\"<\/a>
GM officials said the company’s big bright spot in June was the improvement of full-size truck retail sales.<\/figcaption><\/figure>\n

Car sales plunged across the board during June, capping off the auto industry\u2019s worst quarter in decades as the economic shutdown brought on by the pandemic battered sales of new vehicles in the U.S.<\/p>\n

General Motors said its sales dropped 34%\u00a0in the second quarter while Fiat Chrysler\u00a0reported a 39% drop for the quarter ending June 30 and Nissan reported a 49% decline for the quarter. Toyota Motor North America said its sales dropped 26% during the month of June.<\/p>\n

GM also said while the industry experienced significant declines due to the outbreak of COVID-19, full-size pickup truck sales performed exceptionally well, and overall sales showed signs of recovery, especially deliveries to retail customers.\u00a0GM\u2019s retail sales were off by about 24% in the quarter, roughly in line with the rest of the industry.<\/p>\n

<\/p>\n

(Hundreds of thousands of dealership jobs likely to be cut, otherwise impacted, after pandemic.)<\/a><\/u><\/i><\/strong><\/p>\n

\u201cOur resilient sales reflect an improving demand curve, and the strong efforts of GM and our retailers in unprecedented times,\u201d said Kurt McNeil, U.S. vice president, Sales Operations.<\/p>\n

\"\"<\/a>
The new Jeep Wrangler has been performing better than the rest of the industry with sales down just 16% during the second quarter.<\/figcaption><\/figure>\n

\u201cGM entered the quarter with very lean inventories and our dealers did a great job meeting customer demand, especially for pickups. Now, we are refilling the pipeline by quickly and safely returning production to pre-pandemic levels. Having an appropriate mix of the right vehicles combined with the benefits of enhanced shopping technologies such as Shop. Click. Drive., positions us for success in the second half of 2020.\u201d<\/p>\n

FCA reported a 39% decline compared with the same period a year earlier \u2014 as the economic havoc caused by the COVID-19 pandemic in April was partially offset by the stronger than expected retail sales rebound in May and June.<\/p>\n

Fleet sales were impacted during the quarter as customers initially delayed or reduced their orders, in addition deliveries have been focused on the dealer channel since production resumed, FCA said.<\/p>\n

“This quarter demonstrated the resilience of the U.S. consumer,” said Head of U.S. Sales Jeff Kommor. “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. Our fleet volume remained low during the quarter as we prioritized vehicle deliveries to retail customers. As a result, we have built a strong fleet order book, which we will fulfill over the coming months.”<\/p>\n

\"\"<\/a>
The Toyota RAV4 hybrid outsold the gas version of the ute during June \u2014 a first ever occurrence.<\/figcaption><\/figure>\n

Toyota said six models posted year-over-year sales increases in June, including Camry hybrid, Avalon hybrid, C-HR, RAV4 hybrid, 4Runner, Highlander hybrid and Land Cruiser.<\/p>\n

(Toyota sees retail market bouncing back fast, but warns there could be \u201clumps\u201d ahead.)<\/strong><\/em><\/a><\/span><\/p>\n

Sales of the RAV4 hybrid increased by 89% and accounted for slightly more than half of RAV4\u2019s total June tallies, marking the\u00a0first time ever a hybrid has outsold its gas counterpart.\u00a0Overall, Toyota said the\u00a0June hybrid mix represented approximately 23% of total sales compared with 12% in June 2019.<\/p>\n

Nissan Group announced total U.S. second-quarter sales for 2020 of 177,328 units, a decrease of 49.5% versus the prior year as fleet deliveries dropped sharply.<\/p>\n

\u201cRetail sales have exceeded our expectations in the second quarter as we continue to decrease rental fleet volume and focus on steadily building a quality, sustainable business for our employees, dealers and for our customers,\u201d said David Kershaw, division vice president, Nissan Sales & Regional Operations, Nissan North America.<\/p>\n

\"\"<\/a>
Nissan, which has already been suffering through a variety of issues, saw Q2 sales drop 49.5 percent.<\/figcaption><\/figure>\n

Analysts generally said sales are about where they expected, although analysts from Cox Automotive said during a conference call last week that there were some signs the market for new vehicles was \u201closing momentum\u201d during the in the later part of June as COVID-19 cases increased across the southern United States.<\/p>\n

Eric Lyman, an analyst with True Car, said incentives have given the industry a jump start.<\/p>\n

\u201cWhile incentives are still up year-over-year, the aggressive incentives that came out fast and furiously in April and May to help alleviate sales pains are beginning to soften due to low inventory and assembly plants that are still not back to full production,\u201d added Lyman.<\/p>\n

(June sales expected to be down, but improvement over May.)<\/strong><\/span><\/em><\/a><\/p>\n

\u201cRetail sales over the Fourth of July holiday weekend will be the next big test of industry\u2019s strength and resiliency and will be a litmus test for automakers in deciding to further pull back on incentives.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

Car sales plunged across the board during June, capping off the auto industry\u2019s worst quarter in decades as the economic shutdown brought on by the pandemic battered sales of new vehicles in the U.S. Get the results at TheDetroitBureau.com.<\/p>\n","protected":false},"author":20009,"featured_media":137419,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","footnotes":""},"categories":[7,8,5],"tags":[],"make":[],"post-state":[],"category_old":[118,150,151,123,133,131,299,132,129,125,124,139,148,128,278,288],"acf":[],"_links":{"self":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/posts\/149792"}],"collection":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/users\/20009"}],"replies":[{"embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/comments?post=149792"}],"version-history":[{"count":0,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/posts\/149792\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/media\/137419"}],"wp:attachment":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/media?parent=149792"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/categories?post=149792"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/tags?post=149792"},{"taxonomy":"make","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/make?post=149792"},{"taxonomy":"post-state","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/post-state?post=149792"},{"taxonomy":"category_old","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/category_old?post=149792"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}