November Looking Good For The Auto Industry
DETROIT -- (WWJ) With two days left to go in November, it's looking like we're going to see another strong sales month.
Analysts are expecting the seasonally adjusted sales rate to be in the mid 13 million range, which would be the best we've seen since 2009's "Cash for Clunkers" program.
Ford's director of industry analysis Eric Merkle wouldn't give specific numbers, but did say he expected a strong month.
"We feel good about November from an industry perspective," said Merkle, adding that it will be a good month for Ford as well.
Merkle expecting strong growth in small utilities, and solid sales of compact and mid size cars. He said demand for pickup trucks remains strong, after solid "truck month" promotions in September and October.
Independent analysts say a lot of solid factors converged to bring people back to dealerships in November.
"There were positive forces in the auto market in November, as more inventory was available and automakers began year-end holiday sales events. Deal-oriented messages work more effectively than ever before," stated Edmunds.com Senior Analyst Jessica Caldwell. "While sales are strong now, we are still witnessing the deferred demand from the summer months, so we cannot expect this sales level to be considered the 'new normal.'"
However, other analysts are expecting more growth.
"We've seen six straight months of year over year gains for new vehicle sales, which shows positive momentum for the auto industry, " said Jesse Toprak, Vice President of Industry Trends and Insights for TrueCar.com. "There is a strong possibility that we could reach a 14 million SAAR next month."
At Ford, Merkle says the industry has returned to the growth tend that we saw earlier this year. Whether that continues, depends on the economy, and the number of new jobs that are created.
"Can sales go higher? A lot of that is going to depend on consumer confidence. It's going to depend on the stock market."
Connect With Jeff Gilbert
Email: jdgilbert@cbs.com
Twitter: @jefferygilbert
Facebook: facebook.com/carchronicles
