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.