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Posts Tagged ‘american auto sales’

Parts Shortages Could Cripple Auto Market Rebound

After recession, suppliers racing to rebuild capacity.

by on Aug.12, 2013

The 2014 GMC Sierra 1500 Denali gets a new face, upgraded interior and more power and it's one of many new vehicles buyers are flocking to showrooms to buy.

The good news is that American motorists are racing back to showrooms at a far faster pace than even industry optimists had anticipated at the beginning of the year. The bad news is that automakers are struggling to keep up with that burgeoning demand – and part of the problem is that after years of cutbacks and bankruptcies, industry suppliers can barely keep up.

That could be particularly troubling for Detroit makers who made some of the biggest cutbacks in capacity during the Great Recession only to find that they can’t keep up with consumers as they return to showrooms.

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“It’s amazing if you look at the change,” says Mustafa Mohatarem, General Motors’ chief economist. “At the beginning of the year people were asking do you have too many truck. Now we’re being asked are you sure you are going to have enough?” (more…)

Detroit, Korean Makers Are Likely Winners as Car Sales Rebound

New study also warns that small car sales may be limited by America’s obesity epidemic.

by on May.17, 2011

Products like the Ford Focus could pick up share from Japanese makers as the American market recovers, says a new study.

Despite the shortages facing Japanese automakers like Toyota and Nissan, the U.S. new car market appears poised to experience steady sales growth after one of the worst downturns since the Great Depression.

But this rising tide, at least, won’t float all boats equally, cautions research firm A.T. Kearney.  It  predicts 13.2 million new autos will be sold in the U.S. this year, a roughly 50% increase from the depths of the 2009 downturn.  But as many as two points of market share once controlled by the Japanese carmakers could be up for grabs in the next few months – with Detroit and Korean makers in a good position to benefit at the expense of their struggling rivals.

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A variety of factors, including fuel prices, could impact the pace of the recovery, while also determining the sort of vehicles American motorists consider, the study indicates.  But those who expect a big gain for small car sales could come up short, Kearney analysts warn, pointing to America’s obesity epidemic.