The analysts are saying the strong sales on the North American auto market will maintain the upward trend of production levels in region.
The last six years of auto sales have been constantly rising in the US, thus increasingly more analysts have predicted a record year in car sales in the US market and have revised their estimates upwards. These positive forecasts are also relying on a very encouraging deliveries report in October, when the demand was very solid. Also, North American auto production increased by 1 percent last month and “should remain strong” through the next year to a year and a half due to strong truck sales, healthy inventories and a strengthening economy, Robert W. Baird & Co. analyst David Leiker said today. The 1 percent rise in production maintains the automotive industry on the path for the 2 percent fourth-quarter production growth Baird had estimated, Leiker added. “We continue to expect solid production rates over the next 12 months.”
October production growth was due to high demand for trucks, Baird data show. Truck production rose by 6 percent in October, while car production fell 6 percent. The increase of truck output was driven mainly by 16 percent climb in pickups sales as Ford extended production of its F-series range. Car production declined part of the 10 percent drop in small and midsize deliveries, even if premium car production growing between 15 and 20 percent.
Leiker also commented that “in-line” inventory levels and “robust US sales” should maintain the output’s ascending trend, taking also into account the 14 percent rise in light-vehicle sales last month to 1.455 million vehicles. “With employment, income and confidence seeing solid gains, we believe the market grows low single digits over the next several years,” he said.
Via Automotive News