Advertisement

Experts: U.S. likely to see greater drop in auto sales than during 2008 recession

Globally, auto sales are expected to drop by 12 percent in 2020 compared to 2019. File Photo by Stephen Shaver/UPI
Globally, auto sales are expected to drop by 12 percent in 2020 compared to 2019. File Photo by Stephen Shaver/UPI | License Photo

March 25 (UPI) -- U.S. auto sales will likely be down more than 15 percent this year as spending slows amid the coronavirus pandemic, British research firm IHS Markit said in a global research update Wednesday.

The percentage represents a decline in vehicles sold compared to 2019.

Advertisement

The firm projects U.S. consumers will buy about 14.4 million vehicles in 2020, a drop of 2.4 million compared to IHS Markit's prior forecast for the year.

Worldwide, researchers project a "sharp reduction in near-term growth followed by a slow recovery." Global auto sales are expected to drop by more than 12 percent compared to 2019, with 78.8 million units sold.

RELATED U.S. mortgage applications fall after rate increase, economic slowdown

"A fall of 12 percent for 2020 would be considerably worse than the two-year peak-to-trough decline of 8.0 percent during the global recession in 2008/2009," IHS Markit said in a statement.

Mainland China could see a drop of 10 percent, while Western and Central Europe could have a 14.6 percent reduction.

The projections come as the world economy slows amid the COVID-19 pandemic. Countries across the globe have issued restrictions on movement and activities -- including some shelter-in-place orders -- to limit the spread of the virus.

RELATED Stocks soar on Wall Street ahead of vote on rescue bill

According to Johns Hopkins University, COVID-19 has killed more than 20,000 people and sickened more than 450,000 internationally.

The markets have fluctuated in reaction to the pandemic, with some of the largest losses since the 2008 financial crisis. U.S. stock indices, however, answered with substantial gains on Tuesday and Wednesday.

Last week, the "big three" U.S. automakers -- Fiat Chrysler, Ford and General Motors -- agreed with the United Auto Workers union to rotate partial shutdowns at the plants to protect workers from the virus.

RELATED Potato industry scrambles to meet surging consumer demand

U.S. copes with COVID-19 pandemic

Bass Pro Shops marketing manager David Smith (R) carries a box of donated face masks into Mercy Health in Chesterfield, Mo., on May 13. The company is donating 1 million FDA-approved ASTM Level 1 Procedure Face Masks to healthcare workers and first responders working on the front lines of the pandemic. Photo by Bill Greenblatt/UPI | License Photo

RELATED Ford, 3M, GE to produce needed medical equipment to combat COVID-19

Latest Headlines