US auto sales in May encourage Detroit plan to rebuild inventories

US auto sales in May encourage Detroit plan to rebuild inventories

Several automakers on Tuesday reported stronger-than-expected May sales in the United States, and the Detroit automakers said they will work through their annual summer shutdowns to rebuild inventories as demand recovers from coronavirus shutdowns.

The 2020 Toyota Supra is unveiled during an event at the North American International Auto Show in
The 2020 Toyota Supra is unveiled during an event at the North American International Auto Show in Detroit, Michigan, U.S., January 13, 2019. Picture taken January 13, 2019. REUTERS/Brendan McDermid

DETROIT: Several automakers on Tuesday reported stronger-than-expected May sales in the United States, and the Detroit automakers said they will work through their annual summer shutdowns to rebuild inventories as demand recovers from coronavirus shutdowns.

The U.S. auto sector has reopened assembly plants following the shutdown and automakers that reported May sales said they saw signs of recovery in consumer demand.

Toyota Motor Corp, said overall U.S. sales fell about 26per cent in May, but retail demand rebounded to 86per cent of levels in May 2019, exceeding the company's forecasts. Retail sales almost doubled from April to May, a spokesman said.

Hyundai Motor Co said overall U.S. sales in May fell 13per cent, but that was significantly better than the 33per cent industry decline Cox Automotive had forecast. Hyundai cited a 5per cent increase in retail sales.

No. 1 U.S. automaker General Motors Co said it will keep building vehicles at most of its U.S. plants "to meet strengthening customer demand," instead of taking a traditional two-week summer shutdown starting June 29, GM spokesman Jim Cain said.

"Our share has been increasing and we want to be able to carry that momentum through to the other side of the pandemic," he said.

Half of Ford Motor Co's eight U.S. assembly plants have reduced their shutdowns to one week. Others are shifting their breaks to later in the year.

GM and Ford no longer report monthly U.S. sales.

The University of Michigan's Surveys of Consumers, closely followed by the auto sector, showed that 64per cent of those polled in May said it was a good time to buy a car. That was up from 57per cent in April and the highest level since December. Those saying times were bad or the future was uncertain fell to 28per cent from 38per cent the prior month.

(Reporting by Ben Klayman in Detroit; Editing by David Gregorio)

Source: Reuters

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