Despite Deals and Covid-19 Stimulus sar sales plunged a record amount. But due to factory shutdowns and stimulus offers, dealer inventories are lower than normal. 

Second-Quarter Sales Drop 

Auto sales in the second-quarter are down by about a third according to the Wall Street Journal.

General Motors Co.reported a 34% drop in second-quarter sales compared with a year ago, with demand picking up in May and June. Toyota Motor Corp.’s sales fell by about a third while Fiat Chrysler Automobiles reported a 39% decline. 

The drop wasn’t as steep as feared, and sales have improved steadily since late March. Heavy sales promotions and federal stimulus checks that went out to millions of Americans this spring spurred car demand despite spiking unemployment and stay-home orders across many states, dealers and analysts say.

In recent weeks, retail sales, or sales to individual buyers, have tracked just 4 to 6% below pre-Covid-19 forecasts, according to research firm J.D. Power.

The market and the retail consumer continue to recover beyond anyone’s expectations,” Bob Carter, Toyota’s sales chief for North America, said recently.

Summer Test Coming Up

Heavy incentives with stimulus check flying led to a 33% decline "recovery beyond anyone's expectations."

RECOMMENDED ARTICLES

OK. Let's let's see the consumer encore and fleet sales in the midst of a Hertz bankruptcy.  

If dealers return to pre-covid inventory levels, there will be a pick up in manufacturing.

Meanwhile ponder consumer spending changes.

The Recovery Will Have Many Shapes, Not One

Autos are another example of why The Recovery Will Have Many Shapes, Not One.

Mish

Car Sales Rise, Beating Expectations

Auto sales at GM, Ford, and Toyota beat expectations

Despite Robust Retail Sales, the GDPNow Forecast of Third-Quarter GDP Declined

On Friday, GDPNow lowered its third-quarter GDP estimate from 2.3% to 2.0%

Retail Sales Unexpectedly Sink 2nd Month: Supposedly Car Sales Rise 3rd Month

The consumer has all but thrown in the towel as retail sales unexpectedly declined for the second month.

Auto Sales Dive: Second Quarter Retail Spending Off to Bad Start

Auto sales took a dive in April. This is our first glance at second-quarter consumer spending strength.

Car Sales Dip 3.5% in October, Domestic Down 5.2%

Car sales in October were unexpectedly weak. Domestic car sales were even worse.

Retail Sales Bounce: Upward Revisions Explain Strength in 2nd Quarter GDP

The Keynesian economists and the monetarists at the Fed are singing a happy tune today as retail sales bounced 0.6 percent vs the Econoday consensus estimate of 0.3%.