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Crashing U.S. Auto Sales: Can the Industry Recover?

A slow recovery will buy time for the supply chain, but an uncertain future follows a plunge in sales

Knowledge at Wharton
Mon, 07/13/2020 - 12:02
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While sales of products like toilet paper, hand sanitizer, and even home appliances have skyrocketed during the coronavirus pandemic, auto sales have experienced the opposite. Through March, April, and May 2020, total vehicle sales in the United States fell to levels not seen since the Great Recession a decade ago. Demand crashed as millions of commuters suddenly found themselves working from home or laid off, and consumers responded predictably to the economic uncertainty by putting off expensive purchases such as new cars, trucks, and SUVs.

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But with the lockdowns gradually lifting across all 50 states and life returning to a more normal pace, auto dealers are feeling cautiously optimistic that sales will pick up again and increase throughout the summer months. The bigger question is whether the rest of the year can make up for the springtime slide.

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