US Car Sales Jump In November
After a brutal two years that saw the worst conditions for the automotive industry since the great depression, things have finally turned around.
Car sales in the USA in November were very strong, growing at a pace of 17 percent, and leading experts to revisit their estimates for sales in 2011.
The pace is much stronger than last year, when sales in the US were at a mere 8.6 million new cars.
Still, for all of 2010, sales are currently at only 11 million or so. Not anywhere near where they were just a few short years ago. The slowest of all the major manufacturers was Toyota, still reeling because of it’s own self induced problems due to it’s recent recalls brought on by safety issues. Most other manufacturers saw gains of better than 10%.
At Ford for instance, sales were very strong, especially for trucks and the Ford Fusion.
These figures come at a time that US car makers needed. After the bailouts, there were dire predictions for US auto makers. Consumers will eventually have to purchase cars at a higher rate, and the population grows and the economy continues to recover.
Still, industry analysts don’t expect to go back to the good old days of 17 million cars sold any time soon. Most have kept their expectations to somewhere around 13 million for 2011, and not reaching it’s old highs again for another four to five years.
There are also many used vehicles on the road today, a much higher percentage historically than usual. This means people will need spend more to repair and maintain their cars. When they bring their vehicles in to their local auto dealer, or repair shop for service, and the car is up on the Auto Lift, there is an increased likelihood that they will need major service. At some point, they will weigh the costs of repair vs the cost of a new vehicle, and a decision will be made to purchase a new vehicle. It’s just the nature of the American public. Car sales will eventually pick up.