After the disaster of 2009, U.S. auto sales are in their second year of growth. Easier financing, low interest rates, easier credit have had their say. The sales make for a brighter future for the industry’s recovery and indirectly for the broader U.S. economy.
General motors and Chrysler went in great peril back in 2009 when they filed for bankruptcy protection, while Ford managed to avoid bankruptcy by borrowing billions of us dollars.
Credit is no much more available, and people need to replace their old trucks and cars that their were stuck with during the great recession. Also teenagers and drivers in their 20s are expected to buy new vehicles. That clearly means more demand which in turns results in more shifts, more jobs and an overall growth for the manufacturer.
To survive all manufacturers downsized and turned to return profits even on low sales. Now since the market is starting to revive the overall outlook is starting to look brighter.
Automakers will report their US Sales for 2011 on Wednesday. When all their final figures are calculated, sales are expected to reach 12.7 million up from 11.5 million in 2010 and even better than 10.4 million in 2009, the worst since 1982.