U.S. Auto Recovery May Continue With 12.9 Million Sales in 2011 |
| Bloomberg - Jan 5, 2011 |
U.S. automobile sales may rise to 12.9 million vehicles in 2011, the second straight year of gains, showing investors that the market’s recovery is legitimate.
Total deliveries will rise 11 percent from 2010, according to the average of 17 analysts’ estimates compiled by Bloomberg. Sales rebounded to 11.6 million vehicles last year from a 27- year low in 2009, Autodata Corp. said yesterday.
The gain would provide additional revenue for an industry that returned to profitability in 2010, led by Ford Motor Co.’s $6.37 billion of earnings through three quarters. Still, the analysts’ forecast is for the third-lowest annual total since 1992. It would be 23 percent less than the average 16.8 million annual sales rate before the recession.
“There are some serious positives out there, but some buyers have still been forced out of the market due to credit issues, or they’re paying down debt and unwilling to originate a new car loan,” said Dan Montague, an analyst at the Autofacts forecasting unit of PricewaterhouseCoopers LLP, which forecasts 12.5 million deliveries this year. “It’s going to be methodical, stair-step kind of growth.”
General Motors Co., Ford and Chrysler Group LLC reported U.S. sales gains that
Read Full Article from Bloomberg
- Posted: 2011-01-05 12:21:26
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