May is a critical sales month for the industry as it is consistently in the top three for annual volume. A modest rebound in pace is expected as the summer selling season begins.
The month’s poor performance makes it more likely that the annualized rate will hover around 16.6 million instead of 17 million, the worst reading in 18 months.
Although new car and light truck sales fell 1.8 percent last year, there is reason for dealerships to be reasonably encouraged, notes industry analyst Jim Lang.
Auto sales continued to slide in June as car buyers react to higher vehicle prices and Detroit backs away from dumping unwanted inventory into rental car lots.
