US June Auto Sales Might Hit Highest Level Since December 2007 image

Two leading forecasters say that June sales might hit the highest level since before the 2009 sales plunge.

J.D. Power and LMC Automotive predict that sales in June will increase to about 15.7 million vehicles, which would be an increase of 7.6% compared with the same month last year and the best month since December 2007. LMC Automotive expects an increase to 15.4 million units, from 14.5 million vehicles sold last year.

“There is little question that the automotive market has strong momentum as we close out the first half of 2013, ” said Jeff Schuster, head of forecasting at LMC Automotive. “Looking forward, all the key fundamentals are in alignment to continue the current growth trend, with production capacity limitations being the only major visible risk.”

Luxury auto sales continue to drop and this month so far they accounted for 11.7% of new-vehicle retail sales, a decrease from 12.9% in 2012. This year the leading automaker is Ford with a production increase of 16%, thanks to its F-Series pickup trucks, Escape crossover and Fusion midsize sedan. During the 2008-2009 recession Ford was the only automaker in the US which managed to avoid bankruptcy, compared with GM and Chrysler which had to be helped by the government.

Source: Reuters