U.S. Auto Sales Expected to Reach 16 Million in Two Years
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The Detroit Free Press is highlighting research from consulting firm A.T. Kerney on new vehicle sales Wednesday. The report suggests auto sales in the U.S. should jump to 16 million in 2013 as people stop putting off buying a new automobile and lenders resume doing business with sub-prime borrowers.
Dan Cheng, leader of A.T. Kearney’s automotive practice, forecasts new vehicle sales to reach 13.2 million this year even as units will be down about 200,000 due to the March 11 earthquake and tsunami in Japan. If foreign auto companies are unable to find replacement parts, Cheng believes 328,000 U.S. customers will be up for grabs by other companies.
The Kerney study estimates Americans have saved 32 million automobiles since 2007, meaning if consumers were more financially sound, they would have sold the car. Cheng anticipates 9 million of these vehicles to be replaced with new ones while the rest will be replaced with used vehicles.
Consumers are starting to pay off some of their outstanding debt and others are beginning to work again. This is extremely positive for the auto industry as people need a source of transportation from work to home. Cheng believes 530,000 new vehicle sales will occur over the next several years due to people retrieving their credit ability.
Dan Cheng, leader of A.T. Kearney’s automotive practice, forecasts new vehicle sales to reach 13.2 million this year even as units will be down about 200,000 due to the March 11 earthquake and tsunami in Japan. If foreign auto companies are unable to find replacement parts, Cheng believes 328,000 U.S. customers will be up for grabs by other companies.
The Kerney study estimates Americans have saved 32 million automobiles since 2007, meaning if consumers were more financially sound, they would have sold the car. Cheng anticipates 9 million of these vehicles to be replaced with new ones while the rest will be replaced with used vehicles.
Consumers are starting to pay off some of their outstanding debt and others are beginning to work again. This is extremely positive for the auto industry as people need a source of transportation from work to home. Cheng believes 530,000 new vehicle sales will occur over the next several years due to people retrieving their credit ability.
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