GMThe company said on Tuesday that its US car sales fell 11.8% in 2020, but showed strong signs of recovery in the fourth quarter.

GM said that the company's sales in the US in the fourth quarter of last year increased by 4.8% compared to the same period in 2019, to 771,323 vehicles. The company said retail sales across the automotive industry returned to pre-COVID-19 levels in the fourth quarter.

GM's strong fourth quarter sales may bode well for the automotive industry as a whole. Most car manufacturers plan to announce their sales in the US on Tuesday. Domestic car sales in the US are expected to drop by at least 15% in 2020 compared to 2019.

GM's chief economist Elaine Buckberg said, “We expect the US economy to reach an inflection point in the spring.”

He added: “Expanding vaccination rates and warm weather will return consumers and businesses to a more normal level of activity, thereby boosting the job market, consumer confidence, and demand for cars.”