U.S. auto sales struck a 16-year low in July as automakers were unable to keep up with demand for smaller, more fuel-efficient vehicles, reports the AP and Yahoo.
Another factor for low July sales is the brewing trouble in the credit and auto leasing industry, with several companies getting out of leasing and/or getting stricter on financing criteria.
Ford, GM, Toyota and other automakers said Friday that their U.S. sales fell by double-digits. Nissan was the only major automaker to report a gain, with truck sales up 18 percent thanks in part to the new Rogue crossover and a boost in incentives. Nissan’s overall sales rose 8.5 percent.
Consumers are stuck with SUVs and trucks they can’t sell or trade-in due to the huge loss in value. They are finding it harder to get financing for a new vehicle and the inventory just isn’t there for small, fuel-friendly cars. Will these same issues make August a slow sales month as well?