By David Phillips, Crain News Service
DETROIT (Jan. 4, 2012) — U.S. car and light-truck sales jumped 13 percent last year to 14.5 million units, the highest annual mark since 2007, and car makers and analysts expect U.S. sales to continue rebounding in 2013, albeit at at a slower pace, with some forecasts as high as 15.6 million light vehicles.
The sales gain last year was the third-straight annual increase of at least 10 percent, the first such industry streak since 1973, according to available industry figures.
Sales of cars and light trucks, led by the Volkswagen, BMW and Honda brands, jumped 9 percent in December, pushing the seasonally adjusted sales rate above 15.3 million for the second consecutive month and helping the industry finish 2012 on a high note.
"If you want to hang your hat on something that's really improved in our industry, it's the North American auto business," said George Magliano, senior principal economist for IHS Automotive in New York. "It's a shining piece of U.S. manufacturing."
The National Automobile Dealers Association (NADA) said it expects 2013 sales to increase by another 1 million units.
"With last year's tax policy extended and government spending cuts likely in future months," said Paul Taylor, the NADA's chief economist, "there will be a modest expected decline in purchases of vehicles by the federal and other governments, but not serious damage to the large bulk of consumer purchases of cars and trucks as the economy continues to grow."
December's sales pace of 15.4 million fell just shy of November's 15.6 million, which was the industry's strongest month since January 2008.
Pent-up demand, year-end deals, low-rate financing and easing credit terms are driving the industry's sales.
"People are much more confident about jobs; banks and other credit institutions are much more willing to lend," said Mustafa Mohatarem, General Motors Co.'s chief economist. "You're seeing the customer continue to come back into the marketplace."
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(For a complete version of this story, visit the website of Automotive News, a Detroit-based companion publication of Tire Business.)