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Posts Tagged ‘auto recovery’

The Sky Isn’t Falling, Says GM President

Batey counters concerns raised by Ford CFO that auto sales have peaked.

by on Aug.02, 2016

GM North America Pres. Alan Batey introduces the 2017 Chevy Cruze Hatchback at the NAIAS.

It’s been a great ride for the U.S. auto industry. After crashing into the worst recession in decades, it rebounded to record sales of 17.5 million vehicles last year and, until recently, seemed poised to top that number again in 2016.

But there’s been a growing chorus of concern in recent weeks, industry insiders like Ford Motor Co. Chief Financial Officer Bob Shanks warning that the ride is over, and that U.S. car sales are about to start the inevitable slide. Just don’t count General Motors North America President Alan Batey among those who says the downturn is about to begin.


“We think the industry will plateau at some time, but everything we see says that into the near future the industry will remain strong,” Batey told reporters.


Auto Lenders Loosening Access To Credit

Riskier buyers gaining credit even as delinquencies fall.

by on Dec.07, 2010

Lenders lossen credit, but delinquencies and defaults still decline, reports Experian.

Barely a year ago, even some of the most affluent, credit-worthy customers were being turned away when they applied for automotive loans – one reason new car sales slumped to a decades-low 8.6 million for 2009.  But things are starting to turn in a positive direction, according to a new study by research firm Experian Automotive.

Not only have the spigots re-opened for buyers with top-tier credit scores, but even the “credit challenged” are beginning to find ways to land loans.  Significantly, the loosening of credit is matched by a sharp decline in both loan defaults and delinquencies, according to Experian’s analysis of third-quarter automotive lending.

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“Easier access to loans is a positive sign for the auto industry, as tighter loan criteria during the economic downturn represented a significant challenge for automotive manufacturers and their retail networks,” said Scott Waldron, president of Experian Automotive. “Making it easier for consumers to obtain credit can only help the auto industry moving forward.”


U.S. Car Sales Heading For Big Recovery

IHS forecasting volumes will return to the 17 million range by mid-decade.

by on Dec.02, 2010

With demand for vehicles like the 2011 Nissan Juke growing by double-digits in recent months, is the U.S. car market heading towards all-time record territory?

The U.S. automotive market could recover faster than many had foreseen, analysts from IHS forecast Wednesday, with volumes likely to surge past the 17 million mark by mid-decade.

A variety of factors, ranging from immigration to an upturn in the economy will likely push the recovery, noted senior analyst Michael Robinet.  But there are some factors that could restrain the market, as well, including the likely rise in vehicle prices.

Not everyone echoes the optimistic IHS forecast, however, and some industry leaders are planning for a significantly lower peak during the current economic cycle.

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November’s sales numbers are doing a lot to buoy industry optimism.  The month saw volumes surge to their highest level of the year, an annualized rate of 12.2 million vehicles – with only Toyota among all the major makers posting a decline.


November Car Sales Show Sustained Industry Momentum

But recovery still likely to be a long, slow one.

by on Dec.01, 2010

Initial signs suggest U.S. car dealers were busy in November, following a previous strong month.

While industry bean-counters are still tallying up the reports flooding in from their U.S. dealers, initial indications are that November was another good month for the U.S. auto industry – but still nowhere near the sort of turnaround that carmakers domestic and foreign ultimately are hoping for.

Overall, if outside analysts have their sources pegged, November sales of new vehicles rose somewhere between 15% and 17%, overall, while the retail side of the market posted particularly strong gains.  That’s a segment that observers inside and out watch closely because consumers, rather than fleet buyers, will ultimately drive the long-sought recovery.

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“Strength in retail sales has continued past mid-November, revealing a trend toward sustained upward momentum,” said Jeff Schuster, executive director of global forecasting at J.D. Power and Associates. “It appears that consumer concern regarding the pace of the recovery may be easing as the industry exhibits gradual improvement.”