agent Entrepreneur logo
MenuMENU
SearchSEARCH

New-vehicle Sales Slowed in June

July 1, 2010
4 min to read


DETROIT — Sales of new vehicles in the United States slowed in June, automakers and analysts said on Thursday, raising concerns that the market’s recovery could be stalling after months of slow but encouraging gains.


Sales by most carmakers were higher than 12 months ago, the midpoint of a miserable year for the industry, but below the levels for March, April and May, The New York Times reported.

Ad Loading...


Compared with May, sales last month were lower by 14 percent for Toyota, 13 percent for General Motors, 12 percent for Chrysler and 11 percent for the Ford Motor Company. Auto sales typically fall about 3 percent from May to June each year.


“People feel maybe a little better than they did at this time last year, but their personal financial situation really hasn’t changed a lot,” said Jessica Caldwell, the director of industry analysis at Edmunds.com, a Web site that tracks auto sales. “And until that starts to look better, they still don’t feel comfortable going into a dealership.”


For the first half of the year, the industry was on pace to sell about 11.2 million vehicles nationwide, up from 10.6 million last year. Edmunds estimates sales will total 11.5 million this year, while other forecasts are as high as 12.5 million.


“Even getting to 11.5 is going to be a struggle,” Caldwell said. Edmunds may reduce its forecast if sales do not improve in the coming months, she said.


But automakers say they remain optimistic that demand will improve in the second half of the year. George Pipas, Ford’s chief sales analyst, said the rebound of the industry from last year’s recession was not necessarily expected to be quick or smooth.

Ad Loading...


“It certainly looks like a modest recovery, which is what we predicted and which is what we’re going to get,” Pipas said in a conference call with analysts and reporters.


On a year-over-year basis, Ford sales rose 13 percent and G.M. sales were up 11 percent. G.M. sales increased 36 percent excluding the four brands it discontinued: Pontiac, Saab, Saturn and Hummer.


In the first half of 2010, G.M.’s active brands — Chevrolet, Buick, Cadillac and GMC — sold 12 percent more vehicles than the company sold a year ago with eight brands.


Chrysler sales rose 35 percent from June 2009, though analysts said much of the increase was the result of more deliveries to business and government customers. G.M. said a cut in so-called fleet sales was largely to blame for its decrease from May.


Chrysler sold 527,219 vehicles in the first half of the year, 48 percent of its full-year goal of 1.1 million.

Ad Loading...


The South Korean carmaker Hyundai, which has surged as price-conscious consumers seek less expensive but appealing alternatives to competitors’ offerings, said sales rose 35 percent in June and were on track to set a full-year record for the company.


In contrast, sales fell short of expectations again at Toyota, which continued to struggle to recapture momentum after recalling nearly nine million vehicles to fix defective accelerator pedals. Toyota’s sales rose 7 percent in June from a year ago and 10 percent in the first half of 2010 compared with 2009.


Toyota has been offering generous discounts, but they have not been as effective in recent months as they were when introduced.


Toyota’s problems grew Thursday, when company officials in Japan said 270,000 of its vehicles, including some Lexus luxury cars, might have faulty engines. Last week, the company stopped selling a Lexus hybrid car, the HS 250h, and recalled 17,000 of them to address a potential fire hazard.


The research firm J. D. Power and Associates estimated that so-called retail sales, which exclude bulk deliveries to business and government customers, declined to an annualized rate of 8.5 million vehicles. The annualized retail selling rate, a measure that accounts for seasonal variations in vehicle demand, was 8.9 million in May and 9.6 million in March and April.

Ad Loading...


“It appears that the volatility in the stock market and downbeat economic reports have caused a decrease in consumer confidence, leading to a self-fulfilling prophecy,” Jeff Schuster, J. D. Power’s executive director of global forecasting, said. “Consumers are clearly hunkering down in light of the current environment, waiting for signs of a renewed recovery.”

More Industry

Photo of a retriever dog looking out of an open SUV window with a yellow Peugeot headrest on the top of the window below it
Industryby Hannah MitchellJuly 16, 2026

Gone to the Dogs

A Stellantis brand decided to have some fun with one of its SUVs’ design to address growing emphasis on family pets.

Read More →
Foreign Cars Italia dealership store in front of sunset
Industryby Hannah MitchellJuly 2, 2026

Luxe N.C. Dealerships Change Hands

A collection of Italian and English brand franchises were handed off to the owner’s friend in the business and include the Carolinas’ only Ferrari retail stores.

Read More →
inside of car, person with hands on black steering wheel
Industryby Lauren LawrenceJuly 2, 2026

Exposure Drives Interest in Chinese Cars

At a recent demonstration, consumers had the chance to ride in a Chinese-branded vehicle, a firsthand experience that improved their perceptions and purchase intent.

Read More →
Ad Loading...
Woman's hands holding an wallet empty of cash
Industryby Hannah MitchellJuly 1, 2026

Automotive Consumers Sink Further in Debt

Most financing metrics hit records in the second quarter as more buyers locked themselves into long terms and high monthly payments.

Read More →
Rob Mancuso sitting in a chair on stage
Industryby Hannah MitchellJuly 1, 2026

Agent Advocate

Rob Mancuso, who comes from a long line of auto dealers, values general agents’ place in the industry and makes a case for them taking an even bigger seat at the table.

Read More →
Photo of a touchscreen on a car's dashboard
Industryby Hannah MitchellJune 25, 2026

Driving Under Distraction

Though consumers gave higher marks to new vehicles in JD Power’s most recent initial-quality poll, high-tech interference worsened, pointing to craving for simplicity.

Read More →
Ad Loading...
split background green and blue. 2019 to 2025 with car going from starting location to end point. $37,310 and $48,402. Agent Entrepreneur logo
Industryby Lauren LawrenceJune 25, 2026

Affordable New Cars a Thing of the Past

More than one out of five new vehicles sell for more than $60,000, according to Edmunds. That's up 7% compared to prepandemic 2019.

Read More →
Photo of multiple new SUVs on a car dealership lot
Industryby Hannah MitchellJune 22, 2026

State Follows Federal Warning on Auto Ads

The Massachusetts attorney general cautioned the state’s automotive dealers to be upfront with the consuming public about their vehicle prices or risk punishment.

Read More →
Gas pumps.
Industryby Lauren LawrenceJune 15, 2026

Consumer Outlook on the Rise

Younger generations are feeling more positive about their financial futures and current affordability pressures than older generations, according to recent TransUnion data.

Read More →
Ad Loading...
Group photo of men outside storefront.
Industryby Hannah MitchellMay 28, 2026

Pennsylvania Dealership Under New Retailers

The sale of the Chrysler Dodge Jeep Ram store puts a family auto group on a leaner path as first-time dealers take the helm.

Read More →
Ad Loading...