Monday, July 1, 2013

Demand for trucks, consumer confidence blessing for June U.S. sales

Demand for trucks, consumer confidence blessing for June U.S. sales
DETROIT (Reuters) - U.S. car dealers such as Don Kerstetter have every reason to be, as the industry will celebrate, as it has 2007 happy these days - facing demand not seen since before a recession, General Motors and Chrysler drove into bankruptcy.

The owner of the classic Chevrolet Sugar Land outside Houston is on pace for another month of the new car sales over 200, due to demand for full-size pickups Texans love.

"The month's been good," he boasted. "It is in the last week or so above all picked." Credit is generally good in our area."

Kerstetter is not alone as the U.S. auto industry, the sales expected to exceed 8 percent rise in June and reach their highest monthly pace since before the recession, the two U.S. automakers, are forced to seek bankruptcy protection in 2009.

In may auto sales rose more than expected, as construction workers and oil bought more pickups to growing demand for drill bits to fulfill their services US, a trend expected automakers continue through the rest of the year.

Most analysts expect sales pace in June between 15.5 million and 15.7 million, the largest number of high end of which would mark since December 2007. The industry sales report is expected to be June supply leading indicator for the health of the US economy on Tuesday.

"We think that housing is a driver, but also domestic energy production and also the general economic health of the States such as Texas, which represents a large pickup truck,", said Barclays analyst Brian Johnson, sales annually in June by 15.6 million vehicles expected.

The demand for large pickup trucks is so strong that this year above 2 million for the first time since 2007 the current tempo contains sales after Doug Scott, marketing manager at Ford Motor Co.'s best-selling F-150 truck.

The US real estate boom and stable gas prices play on traditional strengths of the U.S. automakers in pickups and SUVs. So far in this year is the growth rate for the sale of large trucks with 21 percent, three times faster than the industry.

Pickups are one of the most profitable automakers in Detroit, marketed, although current incentives may undermine the profits of $5,000 or more.

"It's actually quite exciting when you consider where sales could go in a few years, when the cycle remains higher grinding to improve employment level," Jefferies analyst Peter Nesvold said.

Lending standards and low interest rates consumers are easing to buy new cars and light trucks.

Car manufacturers also benefit from lower costs, so they book profits on all of its vehicles, including small cars. Commodity prices, including steel, moved lower than vehicle prices have increased.

Raw material costs index is Star Agee to the lowest level since raw materials at the end of 2010 to produce about one-quarter of the total cost to a vehicle; Price declines, the costs per vehicle from $150 last year and this year so far star Agee analyst Michael Ward about even more said in a research note.

Incentives are now falling, help more automaker profits. Industrial research, the company estimated they fell another 0.6 per cent to $2.537 per vehicle in June to the lowest level for the month since 2002, except 2011 as a result of the Japanese tsunami and earthquake distorted.

Concerns remain the Central Bank as executives watch exactly, to determine whether his decisions on demand of consumers could put a damper.

"It will be interesting to watch, where consumer confidence is how the market kind of swayed the last week. You talk to eventually higher interest rates, and what this means for buying consumer confidence, "Joe Hinrichs, Ford's head of North and South America, reporters Thursday on the company product development center in Dearborn, Michigan"

Fed Chairman Ben Bernanke surprised markets by saying last week that the Central Bank is expected to reduce that monthly loan buy rate for $85 billion this year and end total mid-2014 if the economy improves, as expected quantitative easing.

Several current economic indicators have painted a picture of an improving US economy, including gains in the industrial economy and real estate prices and sales. Confidence this month hit its highest level for more than five years.

Duane R. paddock, Chief Executive of Paddock Chevrolet located near Buffalo, New York, has certainly seen the head. He hoped to sell 310 vehicles in June, but the store on Friday had already made 360 and Santiago

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