A top sales analyst at Ford expects that October new-vehicle sales grew 12% for the auto industry. The annual selling rate is also expected to rise to its highest level in more than a year. 950,000 new cars and light trucks were expected to be sold this October compared with 838,052 the same time last year. This would mean the annualized sales pace for October grew to 12 million; the last time this happened was when the cash-for-clunkers program was in effect. Sales for Hyundai increased 38% from last October to 42,656. BMW sales rose 12.4% to 23,222. Volkswagen reported a sales increase of 18% to 20,084. Subaru sales also went up 25% to 22,720 cars. It’s still too early to know if this signals a needed recovery for the auto industry. While consumer spending has recently gone up, consumer confidence remains weak. This upward trend must be supported by higher consumer confidence for it to continue.
I think this is great news for the auto industry. If I’m worried about my finances and keeping my job, buying a brand new car would be out of the question. The increase in sales indicates that more people are feeling financially secure. While the economy is still in terrible shape, these numbers show that it’s getting better. Because sales have gone up for many companies, it is likely that the market is improving rather than a single company suddenly succeeding. Hopefully the auto industry can pick up some speed after seeing some positive numbers.
http://online.wsj.com/article/SB10001424052748704462704575590662948503410.html?mod=WSJ_auto_IndustryCollection
I think that the increased sales in vehicles is due to the strengthening economy. As the stock market rises, consumers are getting more confident about buying cars. However, a dramatic change in the economy could cause a huge set back for auto makers.
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