Car sales are plummeting to a 60-year low amidst an increase in SUV and pickup truck sales.
This year has been a roller coaster of a ride for new car sales in the United States. From the ups of pickup trucks to the downs of passenger cars, the world of car sales needs to get its act together.
According to Merrill Lynch in its latest “Car Wars” report, 71 percent of new 2019-2022 model year vehicles will be light trucks, putting cars on track to sell the lowest number of annual units since 1958 at only 5.3 million. Comparatively, trucks and cars achieved a 50/50 split in sales five years ago, with Edmunds data showing only 52 percent of car buyers ended up purchasing another car this year.
Go Big or Go Home
One of the biggest reasons for the move towards SUVs and pickup trucks are increased fuel economy amidst comparable pricing to cars, plus additional storage space and equal safety features.
Companies like Ford have seen a 14-percent year over year drop in car sales, versus 8.9 percent and 3.2 percent increases in SUV and truck sales, respectively.