U.S. retail sales expected to stall for the rest of 2012, says Toyota’s Lentz

Article by Christian A., on August 10, 2012

U.S. retail sales will be stagnant for the rest of 2012 and Toyota Motor Corp.'s U.S. CEO Jim Lentz thinks that it’s due to consumer nervousness. He said that the industry has stalled since the first quarter. Lentz had spoken to reporters at the Center for Automotive Research's 2012 Management Briefing Seminars.

He said that consumers continue to stay away from incurring debts. Lentz’s concerns seem to oppose the concept of a recovery industry but he clarified that he focused on retail sales, aside from expanding volumes that are entering fleet sales. Lentz predicts that when fleet sales are excluded, the industry is course to retail about 11.3 million-11.6 million new vehicles to consumers for this calendar year.

He said that in the past few months, this figure has been mainly flat. He said that sales are sluggish because of persistent consumer nervousness about the economy. He said that this will continue until after this November’s presidential election. Toyota's own sales volume has been surging the past months. Toyota Division sales increased by 24% in July 2012 over July of last year.

Toyota's U.S. inventory was drained with the impact of the earthquake in Japan last year. Sales had also been low. He thinks that overall industry trends are still encouraging, particularly as consumer credit becomes more available.

He also pointed out that lenders have become more active in the subprime credit market. But then, Toyota's own captive finance company hasn’t done the same. He thinks that when consumers regain their confidence, retail sales will go up quickly. [source: Automotive News - sub. required]

Topics: united states, sales

If you liked the article, share on:

Pin It

Comments

Recommended

Tesla marked a major milestone as it surpassed Ford in market capitalization. Automaker Tesla, formerly known as Tesla Motors, closed out the trading on March 27, 2017, with a market...
by - March 30, 2017
The mid-cycle facelift for the Mercedes-Benz's S-Class have been disclosed to the public eye via these leaked shots. The images that recently surfaced and others like it were published online...
by - March 30, 2017
Reddit user Jdubbswrx spotted a rather deceptive move coming from the German automotive manufacturer Audi. He posted an image of the supposed exhaust of the new 2018 Audi SQ5 sporting...
by - March 29, 2017
McLaren car owners will be thanking the automotive company as it has decided to roll out new goodies for the 540C, 570S and 570GT sports car line-up. From this series...
by - March 29, 2017
On July 11, Audi is set to reveal its flagship luxury sedan, the all new A8. And at this moment, none of us are sure how this model will look....
by - March 29, 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