We all have to agree that 2020 has not been a good year for anyone. The US auto industry is no exception.
Is there a light for automakers at the end of this pandemic tunnel? Seems like the third-quarter sales report says so.
In a report, General Motors Co. stated on Thursday that the US car sales dropped 9.7% in the third quarter. The said percentage is in comparison with last year’s third-quarter sales.
In a typical world, a drop gearing towards 10% is something the US Auto industry should be worried about, but we’re not living in a typical world at the moment. So, instead of getting anxious, car manufacturers see the drop as a good thing.
With a 34% drop in the second quarter, the American car manufacturer welcomes the 9.7% with open arms. The second-quarter plunge was due to the company’s move to temporarily close its North American factories. GMC closed their doors for more than 5 months to protect their workers from the virus. Nevertheless, General Motors also added that their production is starting to go back to its pre-pandemic state.
All in all, the US auto industry is slowly recovering in the third quarter, despite tightening its popular vehicle inventory. Buyers are starting to come back, causing the sales to slowly crawl out of the coronavirus-related slump. Trucks and SUVs sales are also making a fast comeback in the third quarter.
As of writing, there is no definite reason why sales drop is slowly making an upward turn, but there are a couple of speculations.
One factor the US auto industry sees as a reason behind the sales increase is the rising car ownership within urban consumers. Another reason is the more accessible credit condition, which has attracted many buyers as car payments have become more affordable. Lastly, the Labor Day weekend helped attract more sales by providing discounts to customers.
Does this mean that the US auto industry is moving forward amid the pandemic? Hopefully so, but we’ll just have to wait for the fourth quarter. And for more car-related news and tips, check out our blog.