Auto Sales to surge 10% in 2012
What does this sales surge in auto sales mean? The bull rally is on for the Auto Industry but when it has rallied in the past it also has taken other sectors with it.
Sectors that will benefit: Steel, Parts, Railroads, Truckers
NADA’s Taylor Forecasts U.S. Auto Sales to Rise 10% This Year February 04, 2012, 4:35 PM EST
By Dan Hart
Feb. 4 (Bloomberg) -- U.S. sales of cars and light trucks are expected to rise by about 10 percent this year to 13.9 million, reflecting improved consumer demand and more stable credit availability, a dealer group said.
Paul Taylor, chief economist of the National Automobile Dealers Association, said better credit, improved incentives and low interest rates are spurring vehicle sales, according to a statement. He spoke at a press briefing during the NADA Convention and Expo in Las Vegas, reiterating a forecast the group gave last month.
Automakers sold new cars and trucks in January at the fastest pace since the 2009 “cash for clunkers” program without resorting to profit-sapping discounts, signaling demand returned to pre-recession levels.
“Recent sales are what we would expect from a normal growing economy coming back from recession,” Taylor said in the statement.
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