U.S. Immigration focuses on U.S. Economic trends: The U.S. auto market is currently maintaining a steady growth trend. According to forecasts from several industry analysis agencies, U.S. auto sales are expected to reach 16.1 million units in 2014.
Based on the average results from 13 analysis agencies, sales of passenger cars and light trucks in the U.S. are expected to grow to 16.1 million units in 2014, which is approximately 500,000 units higher than the expected sales level for this year. The U.S. auto market reached sales of 16.15 million units in 2007 before the financial crisis, and the previous highest record for U.S. auto sales was 17.4 million units.
George Magliano, Chief Economist at IHS Automotive, stated that the excitement is not just about the 16 million figure; the U.S. auto market is maintaining its current growth trend effortlessly. Automakers are not dumping cars through significant price reductions, and the increase in sales reflects consumer purchasing desire and product appeal.
The last time U.S. auto sales maintained continuous growth for five years was from 1996 to 2000, benefiting from strong demand in the pickup and SUV markets, which allowed the Big Three automakers in Detroit to earn substantial profits. However, as oil prices rose, consumer purchasing tendencies changed, and the sales of the Big Three gradually began to decline. Now, the three automakers have launched competitive models in the compact and mid-size car segments, with prices reaching historical highs.
Driven by strong sales growth, the current expansion rate of the North American automotive industry is experiencing levels not seen since 1950. Morgan Stanley predicts that over the five years ending in 2015, automakers will expand their overall capacity in North America by 3.5 million units.
Many analysis agencies believe that the U.S. auto market will return to 2007 levels next year, with only two agencies predicting that U.S. auto sales will not reach 16 million units next year, but their forecast levels are still as high as 15.9 million units.