Auto sales plunged in June as American buyers moved away from pickups and SUVs in the face of rising fuel prices.

GM has already reported that its US sales dropped by 18 per cent in June compared to last year, with sales of light trucks falling by 16 per cent.

In addition, Toyota reported a 21 per cent drop in US sales in June, which represented the biggest decline in US sales in the last ten years.

Sales of its compact models, such as the Corolla, jumped by 15.6 per cent, adding further weight to suggestions that consumers are favouring smaller, more efficient cars.

Ford also posted a 28 per cent decline in sales with demand for its SUVs dropping by more than half for pickups as other trucks fell by over a third, CNN reports.

Bob Schnorbus of JD Power & Associates, said the shift in demand was at a bad time for the industry because automakers were not able to increase production quickly.

"Anywhere you want to look, credit conditions, the job market, stock market, you can see the consumers are getting hammered," Mr Schnorbus said.



Source:

CNN