May was a horrible month for automakers as many reported sales drops. Part of this can be attributed sales of cars (especially sedans) imploding. According to Automotive News, the 15 largest automakers all posted lower car sales. Overall car sales dropped 16 percent.
"We don't get a lot of ups on cars right now, as far as people even wanting a price on them," said Gary Uftring, president of Uftring Auto Group in Peoria, Ill.
"Styling has changed, and what people want to be seen in is a crossover or a sport utility."
Case in point, light-truck sales rose 2.4 percent in May.
Sedans were the hardest hit for May. Here's a rundown of the big losers,
- Toyota Camry and Prius saw a decrease of about 7,000 models when compared to sales last May
- BMW 5-Series, Ford Focus, and Ford Fusion all saw a drop of over 20 percent
- Worst month of any kind for the Chevrolet Impala, down 54 percent.
Barclays Capital analyst Brian Johnson says the U.S. has gone into a 'sedan recession,' and could hurt sales down the road.
"Excess supply and weak demand for sedans is likely to yield added price pressures. One trend that may accelerate the sedan recession is weakness in deep subprime credit, which largely supports used car values -- especially for sedans."
Source: Automotive News (Subscription Required)