Sales of new vehicles in the U.S. fell 14.6 percent last year, as a pandemic staggered the American economy. But signs of a late rebound, and hopes for nationwide vaccination campaigns, have analysts expecting a recovery in 2021.
Pain Was Widespread
The result wasn’t quite universal, but it was close. A sampling of sales numbers from major automakers shows declines nearly, but not quite, everywhere:
- Fiat Chrysler sales down 17.4%
- Ford sales down 15.6%
- GM sales down 11.5%
- Honda sales down 16.3%
- Hyundai/Kia sales down 10%
- Nissan sales down 33.2%
- Subaru sales down 12.6%
- Toyota sales down 11.4%
- Volkswagen Group sales down 12.8%
- Mazda sales up 0.2%
- Tesla sales up 20.3%
- Volvo sales up 1.8%
Americans bought 14.5 million vehicles—the lowest total since 2012—amid factory shutdowns and stay-at-home orders. As bad as that number may seem, it’s something of a recovery. In late spring, many analysts were projecting sales could fall to just 13 million vehicles.
Even models known for brisk sales showed the effects. The Ford F-150 pickup remained the country’s best-selling vehicle, but saw sales fall 12 percent in 2020.
Recovery is Likely Coming
Still, automakers think better days are not far away, thanks largely to newly approved vaccines for COVID-19
GM Chief Economist Elaine Buckberg, in a statement, wrote, “We look forward to an inflection point for the U.S. economy in spring. Widening vaccination rates and warmer weather should enable consumers and businesses to return to a more normal range of activities, lifting the job market, consumer sentiment, and auto demand.”
In a conference call, Scott Keogh, president, and chief executive of Volkswagen of America, told reporters, “I am as optimistic as one can be. What is weighing on everything is how quickly can we get those shots rolled out.”
Automakers are counting on trucks and SUVs to lead the sales recovery. They made up about 79 percent of new vehicle sales in 2020, up from 75 percent a year before. Vehicles earning early buzz for the 2021 model year include a redesigned Ford F-150 pickup, a new electric pickup carrying the Hummer name, and the rebirth of Ford’s off-road-oriented Bronco SUV.
