Auto Sales Down
Auto sales in the US plunged in June, amid a slumping economy and higher fuel prices. GM, the nation’s largest car manufacturer, posted an 18 percent decline in sales for June. While large, the number was below expectations partly due to an end of the month sales campaign. Other manufacturers also posted lower numbers. Sales for Ford were down 28 percent while Toyota sales dropped 21 percent. Honda Motors, which has the most fuel efficient line-up, increased sales by about 1 percent.
Most of the car sales last month were taken up by more fuel efficient models, leading to shortages in supply for some companies. Sales for pickup trucks and SUVs, typically the market leaders, dropped as consumers shopped for more fuel-efficient four-cylinder engines. Both GM and Ford said they expected that light vehicle sales rate would be near 14 million units for June. Toyota, maker of the successful Prius Hybrid, saw sales dip due to lack of inventory for the cars at most of its dealerships.
Sales for the second half of the year are not expected to be great. The US economy is still weighed down by the continued housing slump, tighter credit and high gas prices. Consumer confidence, a key benchmark in large purchases, has also slipped. Automakers are in a tight spot at the moment due new car production schedules and planned manufacturing plant shutdowns. Many of the companies are unable to meet the higher demand for fuel efficient cars that analysts predict in the coming months.