Follow U.S. investment immigration and U.S. economic news: According to a report jointly released by J.D. Power and LMC Automotive, U.S. auto sales for the year are expected to exceed last year by at least 4%, which would set a record for spending on new transportation vehicles in 2013.
Research firms state that this result alleviates concerns among automakers regarding excessive vehicle inventory, as high inventory levels throughout the year have forced many companies to adjust their production capacity.
J.D. Power and LMC Automotive predict that U.S. consumers will spend $34 billion in December on new vehicles, marking the highest level for this period on record. This not only indicates a significant increase in year-end auto sales but also suggests record transaction prices.
The positive sentiment in the economy was confirmed by the U.S. Department of Commerce's announcement on Friday of an unexpected expansion in the U.S. economy, with the department unexpectedly raising the U.S. GDP growth rate for the third quarter to 4.1%, the highest in over two years.
John Humphrey, Senior Vice President of Global Automotive at J.D. Power, stated, “The strong consumer demand in December indicates another peak in U.S. auto sales. It is expected that the total retail sales of vehicles in the U.S. for 2013 will reach 12.8 million units, with sales revenue reaching $375 billion, an increase of $40 billion compared to 2012.”
U.S. light vehicle sales in December are expected to reach $14 billion, a 4% increase compared to the same period last year, and fleet sales have also seen an uptick. Fleet sales account for about 17% of light vehicle sales for the year, compared to 17.6% last year.
The total sales volume of light vehicles for 2013 is projected to be 15.6 million units, with LMC Automotive also raising the total number of light vehicles and retail sales by 100,000 units to 16.2 million and 1.33 million, respectively.
Consulting firm IHS Automotive predicted last week that U.S. light vehicle sales would slightly exceed 16.1 million units in 2013, and they expect total sales for 2014 to be 16.5 million units.
Jeff Schuster, Senior Vice President of LMC Automotive, stated, “The agreement on the Washington budget has increased Americans' optimism about the economy, which has also boosted auto sales for 2014. Early December sales were affected somewhat because some promotions were moved up to November, and snowstorms forced buyers to stay home.”
North American auto production increased by 5% (700,000 units) compared to the same period last year. Although vehicle inventory has risen, production remains relatively strong. November auto production was 1.4 million units, a 4% increase compared to the same period last year.
