Ford: Fed announcement affected US vehicle sales growth

Article by Anita Panait, on July 1, 2013

Joe Hinrichs, Ford's president of the Americas, remarked that vehicle sales growth in the United States may have moderated following an announcement by the Federal Reserve that it could begin unwinding its accommodative monetary policy. Hinrichs quipped that the auto industry was really strong in the first half of June, but may have "slowed a bit in the last week."

He said that Ford is monitoring whether worries over increasing interest rates are hurting consumer confidence. Auto lending in the US have grown at a faster pace as the market rebounds to a rate of over 15 million sales this year. The Fed's monetary policy has sent interest rates for new-car loans to record lows, supporting demand from US consumers seeking to buy new cars and trucks as replacement for their older models.

Federal Reserve Chairman Ben Bernanke announced last week that the agency may shrink the current $85 billion monthly bond-buying program later this year as well as stop purchases around mid-2014 if the US economy gains is consistent with Fed projections.

Terminating the stimulus program may take years to complete since most Fed officials said they are not expecting the benchmark lending rate to be raised from its lowest-ever range of zero to 0.25 percent until 2015.

According to Hinrichs, the Fed's announcement could have an effect on consumers. He said it will be interesting to watch where consumer confidence goes as the market "kind of fluctuated in the last week" and what higher interest rates mean for consumers' buying confidence." [source: Bloomberg]

Topics: ford, sales

If you liked the article, share on:

Comments

Recommended

Tesla is finally setting a more “definite” schedule with regards to the official launch of the Tesla Model 3 electric car. A “limited production” is said to be slated to...
by - February 25, 2017
Are you a big fan of legendary boxer Mike Tyson, the former heavyweight world champion? Or are you a big fan of the iconic Ferrari F50? Either way, you will...
by - February 24, 2017
It seems that AM-RB 001 hypercar is not the only vehicle project that Aston Martin and Red Bull Racing has gone into. This time, don’t expect something as outlandish as...
by - February 24, 2017
The year 2018 marks the golden anniversary of Subaru of America. Of course, the company will celebrate 50 years of being at the helm of the brand’s crusade in North...
by - February 24, 2017
During car crashes and accidents, there are times that its occupants can’t get out easily. There are times when the only way to get out of that situation is to...
by - February 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