This year is thought to be the best year for auto industry since the recession. 2012 has already begun with a strong start in this branch.
Ford got a high demand for small cars and SUVs, Chrysler already reported its best January in the last four years and Volkswagen got higher sales on the US market. Unfortunately for GM the sales fell.
The industry wide sales are expected to rise around 7% (more than 870,000) for January.
“The U.S. demand continues to grow at a steady pace as the economy improves. For the first time in several years, we are starting the year off with a warm and fuzzy feeling,” said Jesse Toprak, vice president of industry trends for TrueCar.com.
If 12.8 new vehicles were sold in 2011, 14 million are expected for this year (below the 17.3 million in 2000 but higher than 10.4 million in 2009).
The reason for this high demand is the fact that the aging vehicles have to replaced. For this low interest rates and greater loan availability help the customers take the decision to change their cars.
In January Chrysler’s sales jumped 44%, for Ford 7%, and GM reported a 6% decline.
“Overall, the economy’s not in a good place yet, but I think consumers are reacting to the conditions much more favorably than expected,” said Jeff Schuster, senior vice president of forecasting for LMC Automotive, an industry consulting company in Troy, Michigan.