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    Automotive Sales To Reach Pre-Crash Levels Next Year


    William Maley

    Staff Writer - CheersandGears.com

    September 17, 2013

    Analysts are predicting that new car sales could reach pre-crash levels possibly next year. Sales in 2014 are projected to rise to 16.1 million vehicles, just shy of the 16.15 million cars sold in 2007.

    Part of this increase is coming from automakers building better products. Chrysler, Ford, and General Motors are real contenders in the compact and midsize marketplace. Also, Korean automakers are giving everyone in the industry a run for their money.

    “It would be one thing if the domestics were going to get better in cars and pull back on trucks, but they aren’t. You see a rising level of competitiveness for the domestics across the whole industry, which is forcing the Asians to be more aggressive just to maintain where they are,” said Tom Libby, an analyst for R.L. Polk & Co.

    Another part of this increase is due to automakers not laying on the incentives or dumping a lot of vehicles into fleets.

    “It’s not just the number 16 that’s amazing. It’s the fact that it’s coming effortlessly. We’re not dumping cars and trucks into the fleets. We’re not using humungous incentives to move them. It’s a reflection of people’s willingness to buy and the strength of the product out there,” said George Magliano, chief economist for IHS Automotive.

    Source: Bloomberg

    William Maley is a staff writer for Cheers & Gears. He can be reached at william.maley@cheersandgears.com or you can follow him on twitter at @realmudmonster.

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    Yet if China implodes into their own Fiscal mess in the next year or so, I wonder how much will really be sold as people seeing money issues in china will hold off on purchases. I know we have needs to replace worn out auto's but are we looking at another bubble pop or just a balance over all and then this will fall back to more reasonable levels?

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    Oh boy. The streets are going to get more and more populated with vehicles if the number of purchases are going up to 16.1 million. The competitors have certainly stepped up their game with the products, leading the way for more buys. I'll be adding to that rising number in a year or two, also.

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    yet the average age of vehicles on the road increases to like 11 years........it seems to me as long as the financing aspect keeps up, we will crack 16 mill and stay above that for awhile.

    What is needed now, to back off by staying even on all the regulations for emissions, mpg, and even safety. What is needed is the ability to start reducing the cost of new vehicles for more and more people.

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    All I can think of is traffic. Well, its no surprise seeing the boom in the Asian economy, a lot more people in Asia are able to afford a car. Aside from quality of automotive products, automotive companies are coming out with more affordable models for the middle class. This looks like a good sign for the "global recession" people were talking about a few years ago.

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    I think it has more to do with the fact that the purchases that were deferred a few years ago can no longer deferred.... that 1998 Accord/Camry/Impala just can't be kept on the road much longer.

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    All I can think of is traffic. Well, its no surprise seeing the boom in the Asian economy, a lot more people in Asia are able to afford a car. Aside from quality of automotive products, automotive companies are coming out with more affordable models for the middle class. This looks like a good sign for the "global recession" people were talking about a few years ago.

    Well it is also that the cheaper cars are no longer total penalty boxes. A Sonic or Elantra isn't something you buy because it's all you can afford, it is something you buy because you like it too now.

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