2002 Auto Sales Off to Solid Start As Economy Recovers: NADA
New car and light truck sales continue to roll along at a healthy pace, despite lingering economic and global uncertainty, boosting prospects that year-end sales will top the 16 million mark, according to the National Automobile Dealers Association (NADA).
First-quarter 2002 sales fell only 4.5 percent from the same period in 2001 - the second best year in auto retailing history.
The surging popularity of crossover utility vehicles (CUVs) -- hybrids of sport-utility vehicles and traditional cars -- has been a driving force in the year's successful start, according to NADA.
Positive signs in a gradually recovering economy bode well for new-car and light truck sales through the balance of 2002, said NADA Chief Economist Paul Taylor. "With job creation starting to rise, the market is broadening for auto sales," said Taylor. "In addition, concerns about disproportionate hikes in interest rates by the Federal Reserve are starting to fade -- and that's good news for car shoppers and our industry."
Steadily rising fuel prices, in part related to ongoing hostilities in the Middle East, may already be having an impact on consumer purchasing patterns. Taylor noted that consumers are increasingly attracted to fuel-efficient vehicles, as evidenced by the growing popularity of CUVs.
Fuel-saving hybrid drivetrains with both an electric motor and gasoline engine are scheduled for future CUVs.
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