Analysts Predict Very Strong April Sales
When automakers report U.S. April sales tomorrow, they will be up strongly for the sixth month in a row. The U.S. auto industry’s annual selling rate will be 15.25 million vehicles in April, according to economists polled by Thomson Reuters. Here is why:
- Gas prices have been steadily declining since February.
- Housing is up, propelling both real demand for pickups, and a feeling of newfound affluence.
- Kelley Blue Book expects large pickup truck sales to be up 26 percent in April, the largest jump of any major vehicle segment and more than double the industry’s overall auto sales increase during the month.
- Compact crossovers, such as the Ford Escape and Honda Motor Co’s CR-V, are expected to be up 23 percent. Together, trucks and crossovers account for nearly a quarter of the U.S. auto market in April, up from about 21 percent a year ago, KBB data show.
- Truck sales may push GM’s U.S. market share to 18 percent in April, up from about 17 percent in March.
Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.
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15 million a year? Time to inflate that bubble until it pops.
No mention of tax refunds? Those can cover the doc and license, at least. The sub-prime loan does the rest.
To the list of reasons I would add that this is an excellent time to buy a new car or truck because they will only cost more next year and since the elections are settled, everyone knows what to expect for the next four years. The downside is that we can expect the dealer take-it-or-leave-it attitude to return because more people are actually shopping for a new car. If one doesn't buy, another surely will.