Traverse City Record-Eagle

Business

July 3, 2013

Auto sales keep momentum

DETROIT (AP) — Three years ago, U.S. car buyers started trickling back into showrooms after largely sitting out the recession. That trickle has turned into a flood.

From owners of revitalized small businesses that need to replace aging pickups to new hires who need a fresh set of wheels for the daily commute, increasingly confident buyers pushed auto sales back to pre-recession levels in the first six months of this year. Sales in the January-June period topped 7.8 million, their best first half since 2007, according to Autodata Corp. and Ward’s AutoInfoBank. Automakers reported June sales Tuesday. They rose 9 percent to 1.4 million.

The outlook for the rest of 2013 is just as strong. The factors boosting sales — low interest rates, wider credit availability, rising home construction and hot new vehicles — will be around for a while, and experts are hard-pressed for answers when asked what could slow things down.

“It all points to continuing improvement in the auto market,” said Mustafa Mohatarem, General Motors’ chief economist.

Analysts expect total sales of around 15.5 million cars and trucks in 2013, which would be 1 million more than in 2012. New cars and trucks sold at an annualized rate of 15.96 million in June, the fastest monthly pace since December 2007. From January to May, the pace averaged 15.2 million, according to Jessica Caldwell, a senior analyst at car buying site Edmunds.com.

Demand for big pickups has been the driving force. GM, Ford and Chrysler sold 157,480 full-size pickup trucks combined in June. That is up around 25 percent from the same month a year ago and almost double the number the companies sold in June 2009, a year when total sales sank to a 30-year low.

1
Text Only

the BIZ

AP Video
US Ready to Slap New Sanctions on Russia Kerry: Not Worried About Israeli Criticism Boater Rescued From Edge of Kentucky Dam Girl Struck by Plane on Florida Beach Dies Rodents Rampant in Gardens Around Louvre House to Vote on Slimmed-down Bill for Border Looming Demand Could Undercut Flight Safety Raw: 2 Shells Hit Fuel Tank at Gaza Power Plant Raw: Massive Explosions From Airstrikes in Gaza Giant Ketchup Bottle Water Tower Up for Sale Easier Nuclear Construction Promises Fall Short Kerry: Humanitarian Cease-fire Efforts Continue Raw: Corruption Trial Begins for Former Va Gov. The Carbon Trap: US Exports Global Warming Traditional African Dishes Teach Healthy Eating
Hyperlocal Search
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide