The Next American Car Recession Has Already Started

By Keith Naughton, David Welch and Gabrielle Coppola, Bloomberg

These should be boom times for Detroit. Unemployment is at a half-century low, gasoline is cheap and auto sales in the U.S. were near record levels last year. Yet, American automakers are closing factories, cutting shifts and laying off thousands of workers. The industry is behaving like a recession has arrived.

In one segment of the market, it has.

Detroit is in the grips of a car recession marked by the collapse of demand for traditional sedans, which accounted for half the market just six years ago. Buyers have made a mass exodus out of classic family cars and into sport utility vehicles. Familiar sedan models such as the Honda Accord and the Ford Fusion made up a record low 30 percent of U.S. sales in 2018, and things will only get worse.

To read the full article, please visit the Alabama NewsCenter website.

Tags: exp15

Category: ALL POSTS, Partner News Stories