Silver lining behind the may car sales data

How does the weak economic reports strong auto sales? Senior Jessica Caldwell, Edmunds discuss analyst and CNBC's Phil LeBeau.

By Paul A. Eisenstein, msnbc.com of mysteries
May display an another large storm surge is its position the US auto industry as one of the bright spots in the sputtering American economy shoring sale. But also with some decision makers report sales, which almost doubled last month, there are some potentially disturbing questions behind the may figures.

Analysts and industry officials remain unsure whether the auto market can keep its current, rapid pace, especially when others start economic factors, such as for example the strong decline in the growth of jobs and a slide in the stock market, put off to potential buyers.

But for the moment, the may figures let reason to hope, that the car sales exceed also cautious earlier predictions for 2012.

Among the optimists is analyst Jesse Toprak, data tracking company TrueCar.com. "Further recover sales and consumers feel highly satisfied purchase vehicles well, said Toprak, consumers noting that four brands, Toyota, Honda, Hyundai and Kia, the highest average selling prices achieved - the figure actually after discounts - in its history numbers."

Toyota saw its sales in the meantime increase of more than 87 percent for the month, a significant turning point for a manufacturer, the strong declines in large parts of the 2011 suffered. Naturally, the Japanese giant profits must be relativized. Sell in May last year reflects a low point during the impact of the devastating earthquake and tsunami, who all finished but leave hopelessly short of product to sell the Japanese car industry dealer.

But Toyota officials insist, there were other factors behind the may revival. "Our growth was spearheaded by the success of new products of the Camry sold been and Prius family, part of the most aggressive product launch in our history", said Bob Carter, Toyota division general manager.

Other Japanese manufacturers Honda, which was also hard hit by the Japanese disaster March 2011 written an only slightly less impressive 47.6 percent sales jump, 46 percent of the flagship Honda brand and 62 percent or the brand Acura.

In the meantime, Japan's second-largest producer, Nissan, saw its sales "only" 20.5 percent-including the Nissan and Infiniti brands increase. But not quite so serious production-related revenues in 2011 as the other two members of Japan's suffering Nissan three large.

A number of superlatives generates the may numbers: General Motors, with an increase of 11 percent on the previous year, the best sales since August 2009, while the Government's cash for clunkers program written.

Audi was one of the several decision makers reports its best-ever may, when the German siblings VW recorded the best may since 1973. Nevertheless, Jonathan was Browning, President and CEO of Volkswagen Group of America - includes also Bentley - surprisingly restrained during a conference call with journalists.

GM recently raised its forecast for 2012 to a possible high of 14.5 million vehicles of all raised, Browning, said VW now will remain while with a more conservative estimate of 13.9 million.

"We are not prepared, change our forecast," said Browning, warns that there are many economic uncertainties, that 2012 could lead to a softening of demand in the second half. In fact Browning found it especially softening and then ends with a big bang over the holiday weekend "ebbing and flowing" in the market opening in May was, strong month.

Analyst art Spinella of CNW marketing, said that his company "Zittern Index" showed itself to a measurement car interested parties are as concerned. And there are many reasons, worried, be from the uncertain U.S. labour market to the decline of the stock market, without regard to the potential crisis in the euro zone.

On the other hand, reported AAA nationwide fuel prices have on average about 27 cents per gallon since their peak in early April fell. And some oil industry observers believe that some parts of the country pump prices as low as $3 instead of $4 to $5-a-gallon pay if by summer 2012 could see expected soon.

Showing sliding demand and low prices for certain vehicles, small, high mileage offers already. In the new car market demand for fuel-saving models maintain a healthy pace, most manufacturers reported - but GM said that that its full-size pickups 27% in may, more than double the manufacturer's total sales revenue.

An alternative explanation is that as one of the basic tools of the American working class, the increase in sale recommend pick up could now faster than Wall Street main street recovers.

CNBCS Phil LeBeau reported sales of General Motors, up 10.9% compared to 11.4% estimate, while Toyota sales 87.3% vs. 89.5% estimates reported.