November Auto Sales are Solid
After a slow October, U.S. auto sales rebounded in November thanks to a stronger national economy, buzz about new 2004 models and continued discounting that automakers hope will help draw consumers into showrooms over the long holiday weekend, according to the Detroit News.
Major automakers release November sales on Dec. 2. Analysts who follow the industry predict Ford Motor Co. and General Motors Corp. will see increases compared with November a year ago, while DaimlerChrysler AG's Chrysler Group is likely to report a slight decline, according to the News.
Asian makers such as Toyota Motor Corp. and Nissan Motor Co., are expected to continue making gains.
"We estimate U.S. light vehicle sales will be up 5 percent year-over-year in November," John Casesa, an analyst with Merrill Lynch in New York said in a report this week.
Recent signs of growth in the national economy will be reflected in November sales and should bolster demand in future months, said Paul Taylor, chief economist for the National Automobile Dealers Association (NADA). "The expectation is that the Asian badges will pick up additional market share, as has been the trend all year," Taylor said.
But Taylor said strong incentives from GM, and new product from Ford and Chrysler, should help Detroit hold on to 60 percent of U.S. car and truck sales. Taylor predicts U.S. auto sales will end the year at 16.6 million units, down 1.2 percent from last year's 16.8 million total.
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