Q2 sales down

To no one’s surprise, new vehicle sales in the second quarter were down significantly, compared to the same period last year. While not all automakers had reported as this is being written, those that did showed declines ranging from 9.6 percent (Mazda) to 58 percent (Mitsubishi). Overall, initial reports of sales showed a 34 percent decline for the entire industry as lockdowns in the face of the COVID-19 pandemic gripped the country.

In January, industry observers were debating the likelihood of 2020 being the sixth consecutive year to see sales of over 17 million new vehicles. Now, pundits are expecting 13 to 14 million new vehicle sales for the year.

There is some good news, however. With gasoline prices steady, lockdowns in many areas being eased, and continued lowinterest rate financing available, sales are improving following the declines seen in April. This, however, may not continue if COVID-19 cases increase once again, as they are in many states.