P&A Providers & Administrators
MenuMENU
SearchSEARCH

KBB Predicts 10 Percent Increase in January New-Car Sales

January 26, 2012
3 min to read


IRVINE — Kelley Blue Book predicated yesterday that January new-vehicle sales will fall 30 percent below the December high, and end the month at 900,000 units sold. This equates to a 13.2 million seasonally adjusted annualized rate (SAAR).


On a year-over-year basis, 900,000 units would market a nearly 10 percent increase from last January. For the year, KBB forecasts new-vehicle sales to surpass 13.3 million units this year, a predication that’s based on its expectations that the U.S. economy will continue its recovery at a moderate pace. The vehicle information sites also expects rising demand from consumers to replace their aging vehicles, reported F&I and Showroom magazine.

Ad Loading...


"Our analysts have produced a regression model that explores unemployment, housing, consumer confidence and seasonal patterns to assist with our sales forecast for the year," said Alec Gutierrez, senior market analyst of automotive insights for KBB. "Given current market conditions and our expectations for 2012, we believe sales will continue to improve at a conservative pace in 2012."


Improving unemployment conditions and heightened demand stemming from the increasing age of vehicles is expected to help drive sales in 2012, according to KBB. "The more comprehensive measure of unemployment provided by the Bureau of Labor Statistics, U6, which includes part-time workers that would prefer to work full time and marginally attached workers, is still at 15.2 percent," Gutierrez said. "While this is lower than the 15.6 percent of November, it is still quite high overall."


Consumer confidence and housing are projected to remain relatively stable through 2012 and will not influence sales significantly, according to KBB. If current projections hold true, 2012 will be another solid year for manufacturers, but significant downside risks that could slow down the momentum of the sales recovery remains.


"We remain especially concerned about the ongoing European debt crisis and the heightened tensions with Iran as potential events that could derail the current U.S. vehicle sales recovery," Gutierrez said. "The European debt crisis has been of particular concern in recent weeks due to the debt rating downgrade of France, Portugal, Italy, and other European economies, leading to concerns for their ability to generate interest in future bond offerings."


The site’s analysts project that General Motors, Ford and Toyota to lead new-vehicle sales in January, citing the brands’ recent redesigns. "General Motors will be led by strong performances from the Chevrolet Silverado, the hot-selling compact Cruze, and the Equinox crossover, while later in the year a new redesign for the Chevrolet Malibu also will help boost sales for GM," Gutierrez said.

Ad Loading...


Ford will look to the redesigned Focus, Fiesta and F-150, to drive sales in January, Gutierrez added. The 2013 Escape and Fusion redesign also will help keep Ford's sales momentum strong. After losing market share from recalls in 2010 and the inventory shortages resulting from the earthquake in Japan in 2011, Toyota will look to the redesigned Yaris, Camry and Prius V to inflate sales in January.


"In January, we are currently projecting GM and Ford to maintain 18.8 and 16.1 percent share, respectively," Gutierrez said. "Although GM and Ford will lead sales overall, Toyota isn't too far behind in third place and they will likely push to regain share throughout 2012."


More Industry

Orange electric vehicle charging station.
Industry•by Lauren Lawrence•October 20, 2026

Charger Network Growth Slows

Despite a projected increase in public EV chargers in 2026, charging infrastructure remains a top concern for consumers as the gap between the most and least EV-friendly places remains substantial.

Read More →
Fan of $100 bills atop a white envelope
Industry•by Hannah Mitchell•October 13, 2026

Lenders, Consumers Take on More Auto Loan Risk

September records loosened credit access the most in over a decade as buyers took advantage of the conditions to afford trading, though loan applications fell.

Read More →
Red type R Honda civic parked on road.
Industry•by Lauren Lawrence•October 13, 2026

Next-Gen Hybrids in Sight

Dealerships can expect to see revamped hybrids from Honda next year as the company rolls out a new system and model lineup.

Read More →
Ad Loading...
Dodge ram emblem on orange vehicle exterior
Industry•by Hannah Mitchell•October 6, 2026

Gem State Stores Change Hands

A larger auto group founded in the industry’s early years sold two franchises to a neighbor group that's on a growth spurt.

Read More →
Graphic of model car driving on fake road.
Industry•by Lauren Lawrence•October 6, 2026

Charging In Motion

Honda has been researching wireless in-motion charging for electric vehicles since 2025, and new technology developments have put it a step closer to a final product.

Read More →
front grill of a Ford truck with blue Ford emblem
Industry•by Lauren Lawrence•September 30, 2026

Twin Cities Stores Sell

Minnesota-based Walser Automotive Group made what it called the most significant acquisition in its history with a three-rooftop deal in Minneapolis.

Read More →
Ad Loading...
Diesel engine on a production line in a factory
Industry•by Hannah Mitchell•September 29, 2026

U.S. Auto Sales Still Below Prepandemic Levels

Mobility Global industry observers don’t expect the market to return to the higher volumes that became routine before Covid but to stay well below its potential.

Read More →
Front of red tesla car.
Industry•by Lauren Lawrence•September 22, 2026

The Powertrain Shift

Electric-vehicle owners are backpedaling, according to new data, with product availability driving many to shift back to gas-powered engines.

Read More →
White BMW SUV driving on road.
Industry•by Hannah Mitchell•September 15, 2026

Achromatic Autos

The shades that dominate the U.S. car market don’t call attention to themselves, though grayscale may have plateaued after a 30-year upswing, research shows.

Read More →
Ad Loading...
Line of eclipse SUVs in parking lot.
Industry•by Lauren Lawrence•September 15, 2026

Used-Vehicle Affordability Worsens

Listing prices in August defied seasonal trends, rising above $27,000 for the second time this year.

Read More →