NEW YORK–Sales of new vehicles in the U.S. are expected to close 2020 down at least 15%, which would mark one of the industry's worst annual declines since at least 1980.
Vehicle Sales
But as CNBC reported, “In any normal year, such a rapid fall would have meant an industry in crisis. But in 2020, the overwhelming sentiment is ‘it could have been worse’.”
CNBC reminded that during the first peak of COVID-19 in the Spring, sales of new vehicles collapsed as auto plants shuttered and many dealers were forced to close showrooms. J.D. Power even forecast retail sales would decline by as much as 80% in April, leading to likely near-recession sales levels for the year.
But retail sales to consumers rebounded far faster than anyone forecast, the report stated. Sales during the second quarter declined by about 34%. They were largely driven by rock-bottom interest rates, historically long financing offers and people wanting to hit the open road instead of taking public transportation or airlines, CNBC reported.
"A big comeback story of 2020 is without a doubt the recovery of retail vehicle sales, which have nearly returned to pre-pandemic levels," Jessica Caldwell, Edmunds' executive director of insights, told the news outlet.
2020 sales
Edmunds is projecting new vehicle sales to be down 15.5% this year when the final statistics are released in roughly two weeks. That's in line with other industry estimates calling for sales of about 14.4 million to 14.6 million new vehicles in 2020 – down from 17 million in the past five years on average. Cox Automotive is forecasting a 15.3% decline, while TrueCar expects a 15% loss compared with 2019 sales.
With over 50 years of experience in the credit union sector, I have had the privilege of observing and participating in its evolution from various vantage points. My journey has taken me from serving as a dedicated volunteer holding critical leadership roles, including serving on the supervisory committee, as director, and as board chairman, culminating in my tenure as CEO for 12 years and now founder and President/CEO of the National Council of Firefighter Credit Unions . This extensive background has enabled me to " Sit On Both Sides Of The Desk ," blending operational expertise with strategic oversight. In this blog post, I want to share how this dual perspective has enriched my understanding of credit union dynamics and fostered more effective governance. By leveraging the insights gained from years spent navigating both the intricacies of daily operations and the broader strategic objectives, I have witnessed firsthand the transformative power of collaboration, communi...
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