US auto sales signs of recovery in third quarter

GM of General Motors Company 2.72%

US sales fell for the third quarter, but showed signs of strengthening as the US auto industry continued to recover from a coronovirus-related lockdown that brought the business to a near halt this spring.

The US auto industry has rebounded faster this summer due to strong demand for trucks and sport-utility vehicles this summer, increasing urban consumers and increased car ownership and easy credit conditions that drive car payments. Make it more economical.

Analysts were expecting the sales momentum in September to be close to the beginning of this year, before the epidemic led to a mass shutdown of business and travel restrictions in March.

GM said its third-quarter U.S. sales fell about 10% from the prior-year period on Thursday, but the shortfall was lower than the 34% drop posted in the second quarter, when all of its northern to protect workers American factories were temporarily deactivated. The spread of the virus. GM has said that its production has mostly returned to pre-epidemic levels.

The Detroit auto maker has benefited financially to boost demand for large pickup trucks that have long been its sweet spot, as well as cost-cutting measures already in place.

Rival Fiat Chrysler Automobiles NV also reported a 10% decline in third quarter US sales, but the decline was slim compared to the 39% decrease posted in the second quarter. Ford motor Co.

It is expected to release its third quarter sales and numbers from Tesla on Friday. Inc.

It is also expected in the coming days.

Car-shopping website estimates that total US auto industry sales will still be down 11% for the third quarter, but this is an improvement from the nearly 31% decline that occurred in the second quarter.

Leading the recovery, there is a growing demand for car-buying consumers at dealerships, unlike fleet operators and other businesses that buy vehicles in bulk and are still reeling from the crisis.

The lack of available vehicles – a hangover from the car factory closes this spring – is helping to drive prices higher as car companies and dealers pull back on sales promotions and other discounts.

According to JD Power, car shoppers paid an average time high of $ 35,655 for a new vehicle in September, up 5.6% from the same month last year.

JD Power’s president of data and analytics Thomas King said September sales were extended over the weekend of the Labor Day holiday, when many dealerships offer discounts to woo customers, but strong demand for new vehicles Points to “This is despite a tight list for many of the most popular vehicles.”

Hyundai Motor of South Korea Co.

Is one of many auto manufacturers to rebound the industry. Hyundai, which recently expanded its lineup to include the popular full-size SUV, said its U.S. sales rose 5.4% in September compared to a year earlier, and fell only 1% in the third quarter. Has gone.

Japanese car companies, which have a small presence in the truck markets, which are now booming, have slowed to recur. But for some, September seemed to be.

Toyota motor Corp.

TM -0.01%

Its U.S. sales in the third quarter were said to be about 11% lower than the prior year, but it gained 16% in September, with SUVs such as SUVs and Highlanders outpacing the company’s performance.

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