General Motors, the largest American carmaker, reported slumping sales on Wednesday, in a potentially ominous sign for the U.S. economy.
Sales of G.M. cars and trucks in the first quarter fell almost 10 percent from a year earlier, the company said, in part because severe winter weather discouraged consumers. Sales results for other carmakers were mixed, but several reported sharp declines in March, when war in Iran led to higher gasoline prices and may have discouraged some people from making big purchases.
“Anecdotally, we hear a lot of dealers talking about how consumers are bringing up gas prices,” David Christ, general manager of the Toyota Division at Toyota Motor North America, said on Wednesday in an interview at the New York International Auto Show.
But Mr. Christ added that it was too soon to tell what the impact would be on sales for the rest of the year or the types of cars that people bought.
The auto industry is both a bellwether of the U.S. economy and an important pillar. About three million Americans work for automobile and parts manufacturers and dealers, and many times that depend on the industry indirectly.
Toyota Motor reported a 0.1 percent decline in U.S. sales for the quarter on Wednesday, largely because of slower sales for its Lexus luxury brand. But March alone showed a deep slide, with 8.5 percent fewer vehicles sold than a year earlier.
March was also difficult for Honda. The Japanese carmaker’s U.S. unit said sales of cars and trucks fell 12 percent during the month and 4 percent for the quarter.
Hyundai said its sales in March fell 3 percent, but rose 1 percent for the whole quarter.
Several companies noted that because sales in early 2025 were exceptionally strong, this year’s sales suffered by comparison. Last year, many consumers rushed to buy cars before President Trump imposed tariffs on imported vehicles and parts.
March is often a good month for car sales because many American consumers begin receiving tax refunds, which they use to make down payments. But war in the Middle East has added an element of uncertainty.
G.M. said its sales in March rose from February, though it did not provide figures.
“We saw showroom traffic and sales steadily improve after January’s storms, and March was a much stronger month,” Duncan Aldred, G.M.’s president of North America, said in a statement.
Many Americans may simply not be able to afford new cars. The average price of a new vehicle stands at a record high above $50,000, according to Cox Automotive.
“Car prices have gone up, interest rates have gone up, now gas prices have gone up,” Mr. Christ said. “The consumer is just getting whammo-ed.”
Jack Ewing covers the auto industry for The Times, with an emphasis on electric vehicles.
The post G.M. Reports Sharp Decline in Car Sales Amid War and High Prices appeared first on New York Times.
