U.S. auto sales have tumbled since 2008 when the full effect of the recession kicked in and put a crimp on America’s car buying habits. As recently as 2005, more than 17 million car sales were realized, with 16 million units sold being the average for most of the decade leading up to the recession.

Annual Sales

Today, car sales have plunged considerably, falling below 10 million annual units at times before rebounding to 11 million cars sold annually at the present. That 11 million figure may be the “new normal” which also means auto manufacturers, suppliers, workers and everyone else with a vested interest in the industry will need to get used to the lower number.

Oddly, the automakers have found a way to make a profit at 11 million units, something that eluded them when sales were at 16 million units. That’s because in times past car makers ran factories at full tilt and then offered big discounts to move inventory, a recipe for disaster. These days automakers have laid off tens of thousands of workers and are running factories much more efficiently, producing just enough cars to supply dealers.
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