US auto sales in 2010 still 25% down on pre-crisis levels
Posted on 03 January 2011 with 2 comments from readers
As if the continued poor news from US housing is not enough (click here), the recovery in US auto sales continues to be anaemic with total sales in 2010 just about 75 per cent of their 16.8 million annual level before the crisis.
A seemingly permanent loss of 25 per cent of the single largest consumer sales item is surely the stuff of a depression, not a recession. And it is against this benchmark that any report of rising sales in December ought to be compared.
But Wall Street is looking for good news for a New Year rally so do not expect too much realism from analysts. For the reality of 2011 will not be a great recovery, just more of the same bumpy road unless the economy takes another whack from higher interest rates and falling financial markets.
Bond market yields point to a rise in the cost of consumer credit (click here) and that will not be good for the auto sector in 2011. A double dip recession for the US auto industry is perfectly likely. This chart looks like a sector that has fallen down a hole:
2 Comments posted by readers:
per usual, Arab$.net has the real story in a few words, the modus operandi most all “finance” organs fear to employ..God bless..American by citizenship only!
In the US car sales are below pre-crisis level while in China they need to issue Quotas to keep new cars off the road.
Car sales in China would spike big time if it were not for the Quota to keep people from buying cars. Even with all those high import duties on luxury cars where cars cost 2-3 times more than what they do in the US they have to impose a quota to keep the number of increasing cars on the roads. That is how much buying power there is in China.
http://noir.bloomberg.com/apps/news?…d=a7VCn4Huv0nQ
http://www.calgaryherald.com/busines…516/story.html
So in the US the numbers are down but the new car market is now China and to exceed US car sales numbers with car prices at double US car prices is amazing.