Auto Industry Recovery - MIA
The demand for new cars in the United States continues to lag traditional sales numbers and the recent trend continues to indicate a struggle. July figures are down from last year, when Cash for Clunkers propped up demand. Now that the government is no longer propping up the industry and consumer confidence remains low, the real demand numbers look a little bleaker than most analysts originally thought.
There are a few bright spots in the market. New models with appealing style and strong fuel economy are moving well, with dealers struggling to meet demand. The Chevrolet Equinox is hard to find, and the new Buick Regal is driving off lots faster than GM can replace it as well. Ford continues to sell the Fusion and Transit Connect in strong numbers, along with the new Heavy Duty F-Series.
Chrysler showed the only gain by US manufacturers over prior year numbers, although it is largely due to the void in inventory they experienced a year ago in the wake of bankruptcy. The company is currently staying alive as they await new models, and while Fiat gears up for its US product launch. The senior managment claims the company financials are improving, with the potential to show an operating profit for the year.
European makers fared somewhat better when comparing against last years numbers, while most of the Japanese brands suffered worse than their US counterparts. During the Cash for Clunkers program the Toyota Corolla was the number one seller, followed closely by the Honda Civic.
While the Cash for Clunkers program continues to skew sales data, consumer fears are worsened by poor housing sales numbers and lingering jobless rates.
There are a few bright spots in the market. New models with appealing style and strong fuel economy are moving well, with dealers struggling to meet demand. The Chevrolet Equinox is hard to find, and the new Buick Regal is driving off lots faster than GM can replace it as well. Ford continues to sell the Fusion and Transit Connect in strong numbers, along with the new Heavy Duty F-Series.
Chrysler showed the only gain by US manufacturers over prior year numbers, although it is largely due to the void in inventory they experienced a year ago in the wake of bankruptcy. The company is currently staying alive as they await new models, and while Fiat gears up for its US product launch. The senior managment claims the company financials are improving, with the potential to show an operating profit for the year.
European makers fared somewhat better when comparing against last years numbers, while most of the Japanese brands suffered worse than their US counterparts. During the Cash for Clunkers program the Toyota Corolla was the number one seller, followed closely by the Honda Civic.
While the Cash for Clunkers program continues to skew sales data, consumer fears are worsened by poor housing sales numbers and lingering jobless rates.
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