Saturday, December 1, 2012

US auto market signs of recovery

US auto market signs of recovery

Paul A. Eisenstein, the Detroit Bureau
It was the small motor, driving along a long fight, to avert a double-dip recession, economic might. And now, in the midst of the growing signs that the U.S. economy clearly on the mend, industry leaders are increasingly convinced that the automotive industry in the fast forward in the direction of controls to some very well although probably won't take up - years.

As a manufacturer of finished in report extremely strong numbers for October, top American Manager, Jim Lentz he said Toyota is expected to be the end of 2012 with a turnover of 14.3 million - see about 1 million more than a year earlier and one about 40 percent from the depths of the recession.

"And advance the prognosis looks even better," Lentz said his keynote speech at the opening of the annual LA show opened car as he. "Analysts expect that we will reach 16 million in just a few years."

This optimism was unique from other industry leaders media preview gather for the first of two echoed. The Los Angeles map was something of a bellwether, the industry and the economy. During the deep recession, there was a sharp decline in the number of new products on display. Chrysler, then plunging into bankruptcy, went so far as to save money off the spotlight in his exhibition in 2008.

In this year of the manufacturer, that the lights are back on - and it has more than half a dozen new products to debut, if one includes the Italian partner Fiat. In fact, there are probably about 50 new models at the LA Convention Center during the meeting, debuting, half of which is global other media, introduced for the first time in the United States

Performance and fuel economy
Another important product on the display is Ford Fiesta, the remake of the smallest North American range of the manufacturer the 2014. The Fiesta is part of a growing number of small, so-called B - and C-segment models for both buyers on a budget, and others want simply to downsize to reduce their heating costs.

This market segment is by about 13 percent of total U.S. auto sales to 24 percent since 2004, Notes Jim Farley, Ford's global marketing chief grew.

Significantly, buyers must not necessarily room and performance to increase the mileage to victims, executives stress - the mixture of battery cars, new hybrids, plug-ins and advanced conventional gasoline vehicles on. New technologies do as are direct injection and turbocharging, seemed impossible what was once: increase in performance and mileage.

The new Porsche Cayman sport coupe, which was Wednesday, delivers an additional 10 HORSEPOWER, for example, and about 15 percent better fuel economy.

Whether speaking entry-level Econoboxes or luxury cars such as the Porsche Cayman "Mileage is top of mind for most buyers,", said mark fields, who this week officially become the manufacturer's new chief operating officer.

And the considerable improvements in mileage attract buyers back to showrooms are, industry uniformly agreed officials. But there are other factors, to drive an increase in demand. Auto loan interest rates are at or near the historic lows, for one thing. Then there is the need to catch up the problem.

Aging of U.S. cars
Car sales have fallen at least 10 million below the trend line since the beginning of the recession, and several recent studies show that this means that the current US fleet earlier than ever before, most of the vehicles in use for about a decade - and about 20 percent is at least 16 years old.

The recession pushed many groups of buyers out of the market, in particular young drivers have suffered, a higher unemployment rate - and who can fight strong student loans to pay off. But in the last few months noticed Toyota's Lentz "onto the market faster than all other segments younger buyers have returned."

The revival of the youth market is clearly helping with the current increase in demand. The reconstruction effort in the wake of the Superstorm Sandy is ironically. According to various estimates, the disaster can the loss of 100,000 or more vehicles ultimately cost many new products will be replaced. After Ford's fields, the industry has a strong rise of sales in the New York metropolitan area, where storm damage heaviest was.

As a result said the Ford COO he "wouldn't be surprised" If final figures in November came at an annualized rate of 15 million or more that best pace would be industry in nearly a decade.

There are some potential pitfalls. The economy is recovering, there is evidence, the fuel prices could peak once again. A modest upturn actually demand models, may double after high-mileage, although as a last spring from the could choke the U.S. recover, observers warn a large spike.

So could the so-called fiscal cliff, to avert the need to tax new policies and to elaborate spending, a failure by Congress and the White House. Ford Chairman Bill Ford warned recently that this could choke from a recovery, even though a study by the University of Michigan was that less worried about the impact on the automotive industry.

Apart from such setbacks, "we would expect to improve the market," closed fields.

This is particularly encouraging, although few expect top sales in the context of the current cycle the 17 million pay early in the new millennium can reach. During the recession, three big has the most decision makers - and especially the struggling Detroit - unprecedented steps reach new sales figures, the profitability of the industry significantly than anything, cutting operating costs even without what ever car sales boom years could be carried out in the past.

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