A growing U.S. economy and improving unemployment failed to uplift the number of cars sold in July, when sales plummeted 5.7% year over year. The industry, however, recorded an increase in sales for trucks and SUVs in the country.
This distinct growth will partially maintain a need for commercial garage doors here in Salt Lake City, New York and Los Angeles, among other cities, as car dealers will require storage facilities amid a glut of inventories.
Autotrader analyst Brian Moody said that sedans currently pose the biggest problem for car manufacturers. Ford and General Motors in particular struggle to boost its sales since sedans seem to be countering any growth in consumer transactions.
Other analysts believe that the decline mostly stems from drivers’ increasing shift towards other vehicles. Even as gas prices continue to drop, the transition to other car models will probably be for good. Crossover SUVs, for instance, continue to draw attention from more buyers.
The trend can be attributed to a crossover SUV’s bigger space and better mileage.
General Motors Co. likely reported the biggest decrease in sales in July, down 15.4% to 226,107 cars and trucks. Ford Motor Co.’s sales fell 7.4% in the same period, or 199,318 vehicles, while Fiat Chrysler Automobiles N.V.’s sales reached 161,477 vehicles, or 10% lower than the sales figure in the same month of 2016.
It remains uncertain at this point whether or not sales will begin to pick up in the near future, especially since car sales in the U.S. have fallen in July for the seventh month in a row.
While the decline in car sales does not bode well for the automotive industry, the decrease serves as good news for buyers. That is because dealers will likely attempt to outsmart their competitors by offering reduced prices and other attractive incentives.