AUTOMOTIVE INDUSTRY NEWS
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Local new-vehicle sales set to jump 10 percent this year
A report from the OCADA predicts a 'weak but growing' market for the next 18 months.
By Kristen SchottPublished: July 26, 2010 10:08 AM
Courtesy of FotoliaOrange County's auto industry is expected to continue its gradual improvement this year, according to a recent report from the Orange County Automobile Dealers Association. More than 105,000 new vehicles are projected to roll off the lots in 2010, up nearly 10 percent compared to 2009.
However, while pent-up demand is expected to fuel sales, slower spending among consumers will have a negative impact on the industry's recovery.
"Pent-up demand dictates that new-vehicle sales will trend higher for the next several years, but reluctant consumers will dictate that the pace of recovery will be slow," noted the report, which expects the "relatively weak but growing market" to continue for at least the next 18 months.
Despite the moderate forecast, the region has experienced an upward trend this year, compared to 2009, according to the report.
New-vehicle sales jumped 46.4 percent in June, compared to the same month last year. Additionally, second-quarter sales increased 25.2 percent, compared to the same period in 2009, and a 16.4 percent improvement was seen through the first half of this year.
For the remainder of the year, third-quarter sales numbers are expected to struggle, compared to the same time last year when new-vehicle purchases got a boost from the government's Cash for Clunkers program. But, growth in the fourth quarter is "very likely," according to the report.
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Courtesy of Fotolia However, while pent-up demand is expected to fuel sales, slower spending among consumers will have a negative impact on the industry's recovery. "Pent-up demand dictates that new-vehicle sales will trend higher for the next several years, but reluctant consumers will dictate that the pace of recovery will be slow," noted the report, which expects the "relatively weak but growing market" to continue for at least the next 18 months. Despite the moderate forecast, the region has experienced an upward trend this year, compared to 2009, according to the report. New-vehicle sales jumped 46.4 percent in June, compared to the same month last year. Additionally, second-quarter sales increased 25.2 percent, compared to the same period in 2009, and a 16.4 percent improvement was seen through the first half of this year. For the remainder of the year, third-quarter sales numbers are expected to struggle, compared to the same time last year when new-vehicle purchases got a boost from the government's Cash for Clunkers program. But, growth in the fourth quarter is "very likely," according to the report. Related headlines Anaheim Transportation Network tests electric-bus conversion Kelly Blue Book survey shows most car shoppers plan to buy used Quantum Fuel Systems signs deal with Fisker Automotive |
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