The latest monthly motor vehicle sales report released on July 3 paints a grim picture for US car sales. Overall June sales dropped by 3% compared to June of last year—the sixth successive month of lower year-over-year sales.
General Motors, Ford, and Fiat Chrysler were among the greatest losers with declines between 4.7% and 7%. Japan’s top sellers fared a little better, with Nissan seeing 2% growth and Toyota a 2.1% gain.
Economists and Street pundits seem to be stumped as to why Americans are so reluctant to buy cars. Hypotheses that are being bounced around range from tight credit markets to costlier car loans, to negative consumer sentiment about the economy.
Sales have fallen off a cliff, compared to 2016, a record year for the auto industry. In the first six months of this year, vehicle sales hit their lowest point since 2014, and consumer traffic at dealerships fell to a five-year low.
Who’s the main culprit here? Many signs point to subprime auto loans…Read More