Thanks to the perfect chemistry of having access to easy crediting options, sliding gasoline prices and more than enough pent up demand from the recession the US auto sales are healthy and happy.
On Monday the July vehicle sales are expected to hit an annual sales rate – adjusted for seasonal trends – of more than 17 million units for the third consecutive months. According to analysts, industry experts and economists, the majority of economic indicators show these booming times are not close to an end and might run at least a year or possibly even eighteen months at this tremendous speed. Last week consulting firm IHS Automotive released its latest survey saying that while sales have been soaring for the past six years, the average vehicle on US roads still has a record average age of 11.5 years. “We are expecting 17.1 million for the full year, with quite possibly upside potential,” comments Michelle Krebs, senior analyst with kbb.com. “We expect 2016 to be another strong year in the same range.” The most recent year that American motorists indulged in sales of at least 17 million vehicles was 2006 and the industry’s all time record was in 2000, with sales of 17.8 million autos.
And the latest quarter showed General Motors, Ford and Fiat Chrysler reporting an incredible tally of $6.8 billion in profit across their North American units, which showcases the advances taken by the Detroit Three and the convergence of “stars”: rising prices, sliding incentives and the consumer trend to buy larger, more expensive and better equipped vehicles that come with inherent higher profit margins.