Firm predicts slow but steady auto industry growth

By Mike Colias
AUTOMOTIVE NEWS

Published: February 18, 2013 8:59 am ET
Updated: February 18, 2013 9:19 am ET

Related to this story

Topics Automotive
Companies & Associations

ORLANDO, FLA. -- The double-digit sales increases notched by the U.S. auto industry since 2009 will give way to slower but steady growth through 2015, J.D. Power and Associates predicts.

Sales should grow percent this year, to 15.1 million, followed by 4 percent gains in each of the next two years, according to a forecast presented at the J.D. Power International Automotive Roundtable at the National Automobile Dealers Association meeting in Orlando.

A recovery in the U.S. housing market, a slew of new products, pent-up demand and ample credit availability will drive growth, said John Humphrey, senior vice president of J.D. Power's global automotive operations.

Most promising, Humphrey said, is that the growth is happening the right way, with auto makers building to demand and dealers' profitability improving.

"What makes me more excited are the fundamentals that make these volumes more healthy than they had been in the past," Humphrey said.

The fundamentals include:

  •  Auto makers are using 84 percent of their production capacity, the highest level in recent memory;
  •  Strong pricing: Average transaction prices hit $28,586 in 2012, a record high, J.D. Power said; and
  •  The nation's 17,500 dealerships—down from more than 20,000 in 2009— generally are enjoying better profitability and throughput.

Stronger leasing and the continued return of buyers with weak credit will help, too, Humphrey said.


Comments

Firm predicts slow but steady auto industry growth

By Mike Colias
AUTOMOTIVE NEWS

Published: February 18, 2013 8:59 am ET
Updated: February 18, 2013 9:19 am ET

Post Your Comments


Back to story


More stories

Image

Improvements to Radici's nylon line takes it into more applications

March 27, 2015 9:00 am ET

Radici Group, the Italian-headquartered materials firm, outlined the benefits of its Radilon and Radistrong nylon products at NPE 2015.    More

Image

DuPont exec: Still lots of lightweighting needed in the auto industry

March 23, 2015 6:00 am ET

In that role, Jeffrey Sternberg is responsible for bringing the breadth of DuPont advanced materials — as well as renewably sourced materials...    More

Image

How Faurecia made over a relic

March 23, 2015 6:00 am ET

Everything about Faurecia SA's interior trim plant in Saline, Mich., is big.    More

Market Reports

Flexible Packaging Trends in North America

North America represents about 30 percent of the global consumption of flexible packaging. Annual growth in this region is forecast at 4 percent during the next 5 years.

For more insight on growth opportunities, drivers of growth and the outlook for 2015, download this report.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 billion plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Upcoming Plastics News Events

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events