General Motors, Toyota, and Chrysler all report steep declines in auto sales. On the plus side, the results were better than many expected.

Despite Deals and Covid-19 Stimulus car 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."

OK. 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.

“Spending by JPMorgan Chase’s credit & debit card holders fell 13% YoY in week through June 27, compared w/decline of 9.6% in the previous week. What’s more, the pullback was broad-based and not limited to states such as Texas and Florida, where the virus is spreading.”@business

— Danielle DiMartino Booth (@DiMartinoBooth) July 1, 2020

The Recovery Will Have Many Shapes, Not One

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