Analysts think that the total tally of November auto sales in the U.S. will have a sharp increase as the consumers replace their aging models and even with Washington’s political gridlock and Europe’s economic crisis. It’s estimated that November sales, which will be announced on Dec. 1, will approach 1 million units and attain a seasonally adjusted annual rate of 13.4 million, an 8% increase from November 2010. The improvement in sales is achieved despite the turmoil in the euro zone and the inability of the congressional supercommittee in Washington to reduce the federal deficit.
During the opening of Toyota's assembly plant in northern Mississippi, Jim Lentz, president of Toyota Motor Sales U.S.A. Inc. said that the automotive sector is recovering even as the economy lags. The Japan earthquake was devastating to the industry but already, Toyota and other Japan-based automakers are rebuilding inventory.
According to Paul Taylor, chief economist at the National Automobile Dealers Association, the dealers are attracting consumers to enter their showrooms with the use of high trade-in values. He said that many brands in Asia are restoring their inventory.
He added that a strong truck supply implies that through the end of the year, there will be an increase in incentives for those models. Jesse Toprak, vice president of forecasting at TrueCar.com, expects to see big gains from November 2010. Specifically, he predicts Chrysler Group to go up by 38%; Volkswagen AG will rise by 24%; Hyundai-Kia to climb by 22%; and Daimler AG to get a 21% boost. [source: Autonews]