AutoNation raising its 2012 industry sales forecast

Article by Christian Andrei, on April 4, 2012

AutoNation Inc. had a strong performance in March with sales of 25,489 units, prompting the company to raise its 2012 industry sales prediction to the mid-14 million range. This 15% increase is believed to be the effect of the continuing revival of domestic brand automakers. AutoNation’s sales grew 13% for the first quarter.

The results were strong enough for the nation’s largest dealership group to help raise its outlook for the year from its former estimate of 14 million vehicles. AutoNation currently expects 2012 sales to range from 14.4 million to 14.7 million vehicles. When interviewed by CNBC, AutoNation CEO Mike Jackson said that AutoNation was “strong geographically everywhere.”

He added that sales are driven by the pent-up demand as its vehicles have an average age of 10.8 years. It helps that credit is ample and the product offerings are strong. He said that these vehicles have to be replaced.

Last March, AutoNation’s domestic-brand sales increased by 26% to 7,991 vehicles. Ford had led this group with a 25% increase. Its import-brand sales increased by 10% to 13,403 vehicles. Toyota was the leader with a 20% increase. In the meantime, Toyota and Honda inventories are continuously improving.

Luxury-brand sales went up by 10% to 4,095 vehicles. Jackson said that Mercedes led with an 18% improvement. He said that instead of hurting sales, the rising gasoline prices have actually been making sales accelerate even faster.

Since manufacturers have enhanced the fuel efficiency of vehicles ranging from trucks to small cars, consumers have found out that they don’t have to forget about size or performance to achieve a 20 to 30% improvement in fuel efficiency. He explained that they see the big gain that’s offered to them in fuel efficiency since the last time they checked it. Jackson said that this is why there is a “good reason to buy.”

Topics: autonation, sales

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

The Shooting Brake is probably the least rendered body shape in the automotive world. But it’s also the most sought after design among car nuts for its unique, old-fashioned charm....
by - January 23, 2017
Perhaps to make the upcoming Valentine’s day more special, Tinder dating app and Ford UK have cooked up a special blind date for all the single blokes and chicks in...
by - January 23, 2017
2017 is undeniably a very busy year for BMW. After introducing the new 4-Series, the German automaker has just released several new updates. In relation to this, BMW is also...
by - January 23, 2017
The renowned Shelby Super Snake is now 50 years old! As we greet the Super Snake a “happy birthday” or a “happy anniversary,” Shelby itself is celebrating half a century...
by - January 23, 2017
Nearly a year after the Subaru XV Concept was unveiled at the 2016 Geneva Motor Show in Switzerland, this SUV study is making its North American debut at the 2017...
by - January 23, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries