Auto sales are trending up an incentives, like those on the 2010 Toyota Corolla, get much of the credit.
Spurred by some of the heftiest incentives in some time, industry observers report seeing significant signs of growth in the U.S. auto industry during the first part of March.
At least one well-regarded analyst is forecasting that demand could reach an annualized rate of 13 million for the month overall should the pace continue. That would be one of the best months the American market has experienced since the recession began, in late 2008, excluding the impact of last year’s Cash for Clunkers program.
“U.S. auto sales ar tracking strongly,” said Deutsche Bank analyst Rod Lache, in a new report, adding that “several factors appear to be contributing to the uptick.”
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Among the most significant forces in the market: an increase in incentives spending by makers like General Motors and Toyota. The Japanese makers has traditionally been reluctant to put much money on the hood, but heeded dealer calls for an incentive campaign after the disastrous, double-digit decline in sales, last month.