GM and Ford said that sales in the US are still on pace to reach the best year since 2007.
“It’s inevitable there might be a slight, slight offset, but I think the positive factors” boosting auto demand “will overcome,” Ken Czubay, Ford’s vice president of U.S. marketing, sales and service, said yesterday on a conference call.
As the US vehicles are the oldest on average in the region’s history, customers will continue to replace their aging cars by fuel-efficient models fitted with better technology features. Last month, light-vehicle sales in the US increased 3.7% to 1.19 million, matching the analysts’ estimates. Annualized sales rate also increased to 15.4 million from 14.5 million in 2012.
Ford’s February sales increased 9.3%, GM was up 7.2%, Toyota also increased 4.3% and Chrysler went up 4.1%. Yesterday, March 29th, President Barack Obama issued an order on spending cuts, according to which $85 billion will be saved in the following seven months.
“There’s a lot of discussion about Washington right now, but we still feel that the fundamentals are strong and are going to continue,” Kurt McNeil, vice president of U.S. sales operations, said yesterday on the company’s conference call.