Brisk November Car Sales Likely to Add Momentum
DETROIT - The Christmas season is starting early for the auto industry.
On Thursday, auto makers are due to report new-vehicle sales for November, and analysts are expecting the data to show a brisk pace of sales despite the gloomy U.S. economy and enduring worries about the European debt crisis, reported The Wall Street Journal.
TrueCar.com, an auto-information website, forecasts that U.S. sales in November rose 11.5 percent from a year ago, to just over one million cars and light trucks. That should be enough to push the seasonally adjusted annualized selling rate to 13.3 million vehicles, which would be the strongest pace of the year, just ahead of February's rate of 13.29 million.
"Despite some uncertainty in the financial markets, demand for cars remains relatively strong," said Jesse Toprak, an analyst at TrueCar. "November will be the sixth straight month of year-on-year sales increases, and that shows we're gaining some momentum."
The industry started off 2011 with sales strengthening through the first three months of the year, but then the March 11 earthquake in Japan left Toyota Motor Corp., Honda Motor Co and, to a lesser extent, Nissan Motor Co. with a shortage of vehicles. Concerns about the U.S. economy also grew in the second quarter and the pace of sales slowed in June to 11.56 million vehicles on an annualized basis.
The sales pace climbed back above 13 million vehicles in September and October, raising hopes the industry is headed for a strong finish to the year.
At Group 1 Automotive Inc., a large dealership chain based in Houston, Texas, Chief Executive Earl Hesterberg said new-car sales in the first three weeks of November were stronger than expected, and that inventories of Toyota and Honda cars and trucks are improving.
"We are optimistic that the selling rate for the remainder of the year will be decent—much more like September and October than the slower summer months," Mr. Hesterberg said.
TrueCar is forecasting Honda will report a 7 percent rise in sales, which would lift its monthly total above 100,000 cars and trucks. It last broke that mark in April, before the March earthquake and tsunami had taken its toll.
TrueCar is also expecting a big month for Chrysler Group LLC, forecasting a 38 percent gain compared to a particularly weak year-ago total, and another strong showing from Korean auto makers Hyundai Motor Co. and Kia Motor Co.
Nissan, which is less dependent on importing cars from Japan than Honda and Toyota, has seen its inventory bounce back to health levels faster than its two rivals. Mr. Toprak predicted Nissan's sales will rise 12 percent in November.
Ford Motor Co. and General Motors Co. are also expected to report gains.
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