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]

If you liked the article, share on:

Topics: united states, sales

Comments

Recommended

Earlier in November at the 2017 SEMA Show in Vegas is when Hennessey unwrapped the Venom F5 to all of us. But it was actually first introduced as a concept...
by - November 22, 2017
Mercedes-Benz just made an announcement that the 2018 E Class Cabriolet has finally landed in the United States. If you had not known, the E Class will be positioned in...
by - November 22, 2017
After a somewhat successful fray into the automotive market in China, the resurrected German automobile brand Borgward is finally heading to Europe, bringing along with it the Borgward BX7 sports...
by - November 22, 2017
Automotive industry veteran Bob Lutz has once again spoken out against Tesla. Known as one of Tesla Motors’ greatest skeptics, Lutz had stated two years ago that the Silicon Valley...
by - November 22, 2017
Dubai is one of the few countries where expensive cars are the norm, many of which are specially modified as well. And this just in: Bentley has debuted the new...
by - November 21, 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