General Motors reported a 9.7% sales drop in Q1, its steepest decline in nearly four years, as soaring interest rates and record vehicle prices dampened buyer demand. The decline precedes broader industry expectations of a 7% first-quarter downturn, the sharpest quarterly fall since mid-2022 pandemic-related production disruptions. GM’s North American chief, Duncan Aldred, called the trend “abnormal is now normal,” noting last year’s tariff-driven sales rush skewed comparisons.

While GM’s 17% sales surge in 2023 created an unusually high baseline, analysts warn sustained declines could signal weakening consumer confidence. U.S. new-vehicle sales are projected to fall 7% year-over-year, per J. D. Power, with gas prices yet to fully impact buyer behavior.

The slump underscores sector-wide struggles to balance affordability with inflationary costs, leaving dealerships and automakers scrambling to adapt.