J.D. Power Reports Continued Increase in Vehicle Retail Sales
June 8, 2012
by Katie O'Mara, email@example.com
Will an increase in new car sales mean less repairs on aged cars? In a year that has already seen exceptionally mild weather conditions, which has slowed business for many auto glass shops, is increased vehicle retail sales good or bad news? A new report from J.D. Power and Associates shows a 20 percent projected increase in new car retail sales and a 21 percent increase in total vehicle sales in May 2012 as compared to May 2011. The marketing company claims that retail transactions are the “most accurate measurement of true underlying consumer demand for new vehicles.”
“This is the largest year-over-year gain since February 2011, when sales increased 27 percent, compared with February 2010,” says John Humphrey, senior vice president of global automotive operations at J.D. Power and Associates. “The fact that we continue to see strong month-over-month results in retail sales points to the underlying strength of the recovery for the industry going forward. In light of the actions that many automakers took to lower their cost base during the recent downturn, this continued increase in volume certainly bodes well for sector profitability in the near term.”
North American production of new vehicles is also predicted to increase by more than 20 percent as compared to 2011.
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