Monday, March 30, 2020

Automobile sales anticipated to drop as coronavirus created chaos

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Nathan Bomey, U.S.A. TODAY
Published 11: 55 a.m. ET March 25, 2020| Upgraded 12: 29 p.m. ET March 25, 2020

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U.S.A. Today press reporter Nathan Bomey offers a rundown on the business going through massive hiring sprees and why not to stress over your utility costs.

USA TODAY

The U.S. automobile industry’s streak of strong sales is screeching to a halt.

Automobile sales are anticipated to decline by a minimum of 15.3%to 14.4 million lorries in 2020 as the coronavirus ruined the economy, according to a forecast launched Wednesday by research company IHS Markit.

In March alone, lorry sales are anticipated to decrease by 35.5%compared to March 2019, according to a separate forecast launched Wednesday by automobile research website Edmunds.

The COVID-19 pandemic presents the biggest threat to the car industry considering that the Great Recession, which assisted plunge General Motors and Chrysler into bankruptcy.

In the years following the financial crisis, the auto industry returned on its feet as sales hit record levels, skyrocketing from a low of 10.4 million in 2009 to more than 17 million from 2015 through 2019.

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Worldwide, car sales are expected to fall by more than 12%in 2020 to 78.8 million lorries, according to the projection carried out by Colin Couchman, executive director of global vehicles demand forecasting for IHS Markit.

That would top the 8%peak-to-trough decrease throughout the Great Economic crisis.

In the U.S., automakers are administering aggressive incentives to attempt to keep sales humming, with some offering to make a number of months of payments for new automobile buyers. Others are offering long-lasting 0%loans.

Many dealerships are likewise keeping their doors open in the meantime, stating they provide an important service for individuals who still need lorries to get around. Some have been forced to close down showrooms while keeping their service departments open.

Follow USA TODAY reporter Nathan Bomey on Twitter @ NathanBomey

Read or Share this story: https://www.usatoday.com/story/money/cars/2020/03/25/ us-auto-sales-coronavirus-covid-19/5078104002/

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