U.S. Automakers Expect Further Growth

A robust pace is expected to be reported for U.S. March auto sales which will make it the greatest quarter during last four years for new automobile purchases as the U.S. economy recovered and new car purchasers got easier funding. The strong first quarter might offset the effect of poor automobile sales in Europe, where both Ford Motor Co and General Motors Co have suffered losses.

March sales are expected to touch an annualized rate of 14.75 million automobiles. It would be higher from 13.3 million last year ago however lower from 15.1 million during February.

Strong March sales would be realistic proof of a continuous recovery in the U.S. auto industry. The reasons cited for the recovery are warm weather last month, higher gas as well as used car prices. Therefore some people bought new automobiles earlier than planned.

The present gas prices will further speed up the sales since consumers would prefer considerably more fuel saving latest vehicles.

Underlying strength in consumer demand is proved by double-digit sales increases as well as lowered incentives in March. It is expected that leading automakers will report gains on year-ago sales, led by Toyota Motor Corp., GM and Chrysler Group LLC.

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Leo Pierson

About Leo Pierson

Former partner in a real estate management firm, Leo, has been active in the market for the last 8 years. Ex-blogger on penny stocks, now focused on long term growth stocks, Leo provides valuable market snapshots each day as part of our editorial team.

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