Several major automakers had relatively good U.S. sales in Q4 last year, inspiring market optimism that the auto industry will continue to recover this year and emerge from the crisis of the new crown pneumonia (CCP virus) outbreak.
General Motors (GM) said on the 5th that sales increased by 4.8% in the 4th quarter of last year, the only quarter in which sales increased in 2020, and Toyota also said that sales increased in December compared to a year ago. Fiat Chrysler (FCA) also said that sales accelerated in the 4th quarter of last year compared to the same period of the previous year.
Almost all major car manufacturers forecast that sales are expected to decline sharply in 2020, reversing the glory of the U.S. auto market over the past five years, including annual sales of up to 17 million cars.
Analysts at several research firms estimate that if the 4th quarter sales data is included, U.S. auto sales last year are expected to range from 14.4 million to 14.6 million units, down 15 percent from the previous year and at least the lowest sales level since 2012.
GM said that pickup trucks and large sport-utility vehicles (SUVs) last year in the 4th quarter delivery volume increased significantly, these two vehicles are the most profitable car models. GM sales fell 12 percent last year, a decline smaller than the overall auto industry’s expected results.
Toyota’s U.S. sales fell 11% last year, its RAV4 SUV and pickup truck Tacoma strong demand to make up for the Corolla and Camry sedan, including the overall decline in auto sales.
FCA sales fell 8% in the fourth quarter of last year, mainly due to the new crown epidemic impact on people travel, resulting in a sharp decline in demand for car rental companies. The company’s full-year sales plunged 17 percent.
However, analysts believe that car sales are expected to recover further this year, mainly by the near-record-low interest rates and a new round of bailout package to boost. The latter includes direct cash handouts to the public. Car dealers and business executives are confident that the new pneumonia epidemic will stimulate demand for new cars, for example, some consumers prefer to drive themselves instead of taking mass transit.
Analysts also predict that automakers will continue their efforts to rebuild inventories for most of the year, which is expected to improve profit margins for manufacturers and dealers and provide fewer incentives to consumers.
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