US: forecasters predict June sales will show strong growth image

June auto sales in America, the world’s second largest auto market, are expected to grow by 4 percent from the same month a year ago, even though 2014’s June had one more selling day.

According to consultancies JD Power and LMC Automotive, the auto industry growth in the US remains robust, even as the sales have been rising for years after the major slump seen during the Great Crisis almost a decade ago. “Don’t let the lower year-over-year percent change fool you; this is arguably the strongest and healthiest the auto industry has been in a very long time,” comments Jeff Schuster, senior vice president of forecasting at LMC Automotive. LMC and JD Power said last month deliveries probably will reach just fewer than 1.5 million units, a prediction supported by auto shopping websiteEdmunds.com. Kelly Blue Book had an even more optimistic view, predicting sales would come at around 1.5 million autos.

Anyone looking at the sales in recent months might say the year-over-year percent increases have been modest at best, but the US auto market is mature and the growth is healthier than ever, supported by numerous indicators. That includes economic trends, gasoline prices, stock market advances, surging and stable transaction prices for cars and trucks, alongside a very long list of models being launched now or throughout the rest of the year. The analysts also point out to the stance of automakers today – GM and FCA have recovered completely from the bankruptcy reorganization procedures and every carmaker operating in the US has axed unnecessary production sites, carefully matching demand to output levels.

Via Reuters