Used car prices in the U.S. fell 4.2% in June, their biggest monthly drop since the early days of the pandemic, as a key measure of inflation eases.

General Motors Co. and Toyota Motor Corp. both posted strong sales gains in the second quarter, signs of consumer health in the auto market as semiconductor supply improves.

As the recovery of global auto sales takes shape, it’s becoming clearer that sales of internal combustion vehicles are unlikely to ever return to pre-pandemic levels.

DEARBORN, Mich. — Ford will increase production of six models this year, half of them electric, as the company and the auto industry start to rebound from sluggish U.S. sales in 2022.

AutoNation Inc., one of the biggest car dealership chains in the U.S., expects prices for new and used cars to decline this year as manufacturers crank up volumes and offer more incentives to price-sensitive buyers.

Global spending on electric vehicles is surging. According to a new report published by BloombergNEF, annual spending on passenger EVs hit $388 billion in 2022, up 53% from the year before.

Shortages of computer chips and other parts continued to hobble the U.S. auto industry last year, contributing to vehicle sales dropping 8% from 2021 to their lowest level in more than a decade.

While prices on new and used vehicles remain 30% to 50% above where they were when the pandemic erupted, signs are pointing to many vehicles becoming slightly more affordable.

Vehicle sales in the U.S. are expected to fall 17.3% this year to the lowest level in a decade as semiconductor shortages and other supply chain problems continue to hamper production.

DETROIT — Prices of new and used automobiles are staggeringly high, and that’s partly responsible for strong earnings last year by AutoNation, the country’s largest dealership group.