Auto sales coming back strong

| Wednesday, May 18, 2011
| |

Sales of cars and trucks are expected to return to pre-recession levels by 2013, according to a new forecast by A.T. Kearney.

The management consulting firm said it expects sales to rise to 13.2 million vehicles this year from 11.6 million last year. Automakers are expected to sell about 16 million vehicles by 2013.

And the Detroit News reports that $4-a-gallon gas isn't killing auto sales. Yes, consumers are buying small, more-fuel efficient vehicles. But that's OK because the retooled Detroit Three are making money on smaller cars now.



Analysts also expect the Detroit Three to hold market share against foreign competitors over the next several years, which is good news for Michigan's economy.

The state already is starting to feel the benefit of rising auto sales through job growth and more money going into state coffers. A revenue estimating conference held earlier this week predicted an estimated budget surplus of $429 million for the current fiscal year.

But rising auto says won't exactly usher in the return of the good old days of auto jobs in Michigan. Domestic automakers and suppliers will be building all those new cars and trucks with about a third of the workers they employed 10 years ago, according to the Center for Automotive Research.

1 comment:

Almond Torres said...

Actually auto sales is very in demand since it is a source of vehicles that can commute to distant places no wonder its sales is increasing. Nice blog





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