Despite growing losses in Europe and slowing growth in the United States, most of the auto companies will hire more people to build more vehicles over the next year to keep up with increasing consumer demand for new vehicles.
According to a report from KPMG, nearly 75 percent of US auto executives plan to hire over the next 12 months, and 83 percent expect their firm’s revenue to be higher a year from now.
“The survey results clearly demonstrate a U.S. automotive industry that is regaining confidence,” Gary Silberg, KPMG’s national auto industry leader, said in a statement.
Most of the auto executives have said demand for new vehicles should continue to drive sales as the average age of vehicles on US roads is at an all-time high of almost 11 years.
Last month automakers reported big gains. Chrysler posted its best June in five years. Sales soared at Volkswagen, which is on track for its best year in the U.S. since 1973.
The results allayed fears that growth would stall after a strong start to 2012. Earlier this spring, sales were on track to reach 14.5 million this year, boosted by mild weather and the post-earthquake return of Japanese cars to showrooms.
“There is demand out there” despite the uncertainty about the overall U.S. economy, said Adam Silverleib, vice president at Silko Honda in Raynham, Mass.
“Supply is back to normal. My inventory is pretty good right now although I can’t get enough Civics.”
Before the US economy sank into recession, annual auto sales tallied 16.1 million in 2007. They plunged to 13.2 million in 2008 and a 27-year low of 10.4 million in 2009, before beginning a slow recovery.
Last year, US auto sales totalled 12.8 million.