December Boom for US Auto Companies
Published By : 06 Jan 2015 | Published By : QYRESEARCH
Car makers in the United States have reported annual sales in December 2014 as their strongest since 2006.
The companies have successfully taken advantage of plunging fuel prices and low interest rates to bounce back from a worldwide automotive financial crisis. The soaring numbers could prove extremely beneficial to companies that had to experience government brokered restructurings.
Light cars and truck sales in the U.S. increased by 5.9 per cent from the previous year to over 16.5 million in 2014. The statistics are provided by Autodata Corp., which also stated that the sales in December were almost up by 1.5 million, which is up by 11 per cent from the previous year.
Car makers’ hopes have been bolstered in the end of a year that saw record number of recalls. The recalls began with the faulty ignition switches in older cars from General Motors Co. The issue has already been linked to 42 deaths in the U.S.
Most automotive bigwigs are facing extreme pressure due to the largely publicized airbag recalls due to faulty ones installed by Takata Corp.
The bad news is now steadily losing limelight as consumers are being attracted by low fuel prices, financing deal with zero interest and a general increase of disposable incomes.
Sales are also on the rise due to a slew of new releases that are showcased in January’s North American International Auto Show. The car companies are expected to maintain their growth rates in sales through 2015.
Experts, however, believe that the sales might cool down in 2015 as the Federal Reserve looks to increase interest rates by mid-year.