Please ensure Javascript is enabled for purposes of website accessibility
Car Sales Rebound to Help Automakers Avoid Disaster
gvw_ap_news
By Associated Press
Published 4 years ago on
January 6, 2021

Share

DETROIT — Sales of new vehicles in the U.S. fell 14.6% last year, but a second-half rebound from a coronavirus-related plunge in the spring kindled optimism for a recovery later this year.

Automakers on Tuesday reported selling 14.57 million new vehicles for the year, a far cry from the five previous years with sales over 17 million. But the 2020 performance was better than most forecasters had expected when the pandemic forced auto factories and many dealerships to shut down in April and May.

General Motors Chief Economist Elaine Buckberg said she expects sales to recover in the spring. With warmer weather and widening novel coronavirus vaccinations, life should return more toward normal, lifting the job market and auto demand, she said in a statement.

“We feel like there’s light at the end of the tunnel,” said Randy Parker, vice president of sales for Hyundai Motor America. “I think it’s going to be a solid year.”

But Parker said he’s still cautious, with hospitals overflowing in California and cases rising in other states. “It’s far from over,” he said. “We can’t afford to let our guard down at this point.”

Last spring, unemployment skyrocketed as states imposed lockdowns and other measures to limit the virus’ spread. Auto sales tumbled 34% in the first half of the year as factories closed for about two months, cutting off the supply of new vehicles.

But as the summer came, people with jobs started splurging on loaded-out cars, trucks and SUVs late in the year. That and low interest rates drove sales up and pushed the average auto sales price to a record of just over $38,000 in December, according to J.D. Power. Also in December, sales rose 5% from the same month in 2019, and GM said its sales improved every month since May.

“Those that haven’t been financially impacted by the pandemic are redistributing funds from travel to home improvement, house purchasing and vehicles,” said Jeff Schuster, president of global vehicle forecasting for the LMC Automotive consulting firm.

Automakers still haven’t been able to make up for production lost during their factory closures, and that has kept inventory tight and limited buyers’ choices to more expensive vehicles, Schuster said.

Analysts Say the Higher Prices and Tight Inventory Won’t Be Changing Much Anytime Soon

Retail sales to individual buyers are close to normal levels, but sales to fleet buyers such as rental car companies are still down.

Analysts say the higher prices and tight inventory won’t be changing much anytime soon.

“These factors will continue into 2021, with supply lagging demand and reflected in higher prices for new and used vehicles,” said Karl Brauer, executive analyst for the iSeeCars.com auto website.

Schuster said he expects 2021 sales to rise to 15.7 million this year as inventory improves in the second and third quarters. He doesn’t expect a return to 17 million until at least 2024.

Among automakers, GM’s sales were down 11.9% for the year, while Toyota sales were off 11.4%. Ford fell 15.4%, while Fiat Chrysler was off 17.4%. Struggling Nissan reported sales down 33.2% for the year, while Honda fell 16.3% and Hyundai sales dropped 10%. Volkswagen Group was down 12.8%, while Subaru sales were off 12.6%.

For the year, sales of fully electric vehicles rose 9.9% to 260,092, according to Autodata Corp.

Sales of cars continued to fall, dropping to 28.3% of the market, with trucks and SUVs making up 71.7%.

Ford’s F-Series pickups remained the nation’s top-selling vehicle with 787,422 sales, down 12.2%. The Chevrolet Silverado was second at 586,675, up 2.8%. The Silverado ousted Fiat Chrysler’s Ram pickup from the No. 2 slot. It passed the Silverado in 2019. Toyota’s RAV4 was the top-selling SUV at 430,387 in sales, while the Toyota Camry was the most popular car with 294,348 in sales.

RELATED TOPICS:

DON'T MISS

What Are Fresno Real Estate Experts Predicting for 2025 and Beyond?

DON'T MISS

First California EV Mandates Hit Automakers This Year. Most Are Not Even Close

DON'T MISS

Fresno Man Arrested in 2004 Cold Case Rape and Murder

DON'T MISS

Valley Crime Stoppers’ Most Wanted Person of the Day: Willie Ray Butler

DON'T MISS

California’s Economy Ranks Fourth Worldwide, Surpasses Japan

DON'T MISS

Fresno County Traffic Stop Leads to $600K Cocaine Bust

DON'T MISS

Fresno Ranks Fourth in US for an Affordable Night Out

DON'T MISS

New US SEC Chair Says Crypto Sector Deserves Clear Regulations

DON'T MISS

US Officials Arrest Milwaukee Judge for Obstructing Immigration Operation

DON'T MISS

Exclusive: US Congress Republicans Seek $27 Billion for Golden Dome in Trump Tax Bill

DON'T MISS

China Exempts Some Goods From US Tariffs

DON'T MISS

Luigi Mangione Due in Court for Arraignment as Prosecutors Seek Death Penalty

UP NEXT

On Major Economic Decisions, Trump Blinks, and Then Blinks Again

UP NEXT

Chicago Bears Great Steve McMichael Dies at 67 After Battle With ALS

UP NEXT

Long Wait Is Over for Cam Ward, Travis Hunter and Other Draft Prospects Joining the NFL

UP NEXT

Golden State’s Jimmy Butler Injured in Game 2 Loss, His Status for Game 3 Unknown

UP NEXT

Jalen Green Makes Eight 3s to Help Rockets Even Series With Warriors

UP NEXT

US Justice Department Directs Investigations Over Gender-Affirming Care

UP NEXT

US Justice Department Cancels Hundreds of Grants for Police, Crime Victims

UP NEXT

Yelich’s 5th Career Slam and Bauers’ 2-Run Homer Power the Brewers to Win Over the Giants

UP NEXT

Happ Hits Game-Ending Single in the 10th as the Cubs Rally Past Dodgers

UP NEXT

Trump: No Plans to Fire Fed Chair Powell, but Wants Lower Rates

Fresno County Traffic Stop Leads to $600K Cocaine Bust

1 hour ago

Fresno Ranks Fourth in US for an Affordable Night Out

1 hour ago

New US SEC Chair Says Crypto Sector Deserves Clear Regulations

1 hour ago

US Officials Arrest Milwaukee Judge for Obstructing Immigration Operation

2 hours ago

Exclusive: US Congress Republicans Seek $27 Billion for Golden Dome in Trump Tax Bill

3 hours ago

China Exempts Some Goods From US Tariffs

3 hours ago

Luigi Mangione Due in Court for Arraignment as Prosecutors Seek Death Penalty

3 hours ago

Shedeur Sanders Snubbed in NFL Draft’s Round 1 but Leads List of Top Available Players for Day 2

3 hours ago

Chargers Choose North Carolina RB Omarion Hampton in Effort to Boost Offense

3 hours ago

49ers Draft Georgia Edge Rusher Mykel Williams With the No. 11 Pick in the NFL Draft

3 hours ago

Fresno Man Arrested in 2004 Cold Case Rape and Murder

A Fresno man has been arrested in connection with a decades-old cold case after DNA technology linked him to the 2004 murder and sexual assa...

48 minutes ago

Robert Castillo (left), 61, of Fresno, has been arrested in the 2004 murder and sexual assault of Barbara Lee after DNA evidence linked him to the cold case and two additional rape investigations. (Fresno County SO)
48 minutes ago

Fresno Man Arrested in 2004 Cold Case Rape and Murder

Willie Ray Butler is Valley Crime Stoppers' Most Wanted Person of the Day for April 25, 2025. (Valley Crimes Stoppers)
57 minutes ago

Valley Crime Stoppers’ Most Wanted Person of the Day: Willie Ray Butler

58 minutes ago

California’s Economy Ranks Fourth Worldwide, Surpasses Japan

A CHP K-9 unit discovered 13 pounds of cocaine worth over $600,000 hidden in a vehicle's exhaust tunnel during a traffic stop on I-5 in Fresno County on Thursday, April 24, 2025. (CHP)
1 hour ago

Fresno County Traffic Stop Leads to $600K Cocaine Bust

1 hour ago

Fresno Ranks Fourth in US for an Affordable Night Out

The seal of the U.S. Securities and Exchange Commission (SEC) is seen at their headquarters in Washington, D.C., U.S., May 12, 2021. Picture taken May 12, 2021. (REUTERS/Andrew Kelly/File Photo)
1 hour ago

New US SEC Chair Says Crypto Sector Deserves Clear Regulations

Hannah Dugan speaks as she was seeking election to Milwaukee County Circuit Court during a forum at the Milwaukee Bar Association in Milwaukee, Wisconsin, U.S., March 15, 2016. Mike De Sisti / USA TODAY NETWORK via Imagn Images via (REUTERS/File Photo)
2 hours ago

US Officials Arrest Milwaukee Judge for Obstructing Immigration Operation

A Lockheed Martin Terminal High Altitude Area Defense (THAAD) missile interceptor is seen during the third annual "Made in America Product Showcase" on the South Lawn of the White House in Washington, U.S., July 15, 2019. (REUTERS/Kevin Lamarque/File Photo)
3 hours ago

Exclusive: US Congress Republicans Seek $27 Billion for Golden Dome in Trump Tax Bill

Help continue the work that gets you the news that matters most.

Search

Send this to a friend