Skip to main content
Sister Publication Links
  • Automotive News
  • Rubber News
  • European Rubber Journal
Subscribe
  • Login
  • Register
  • Subscribe
  • Current Issue
  • HUMANITARIAN
  • News
    • TIRE MAKERS
    • COMMERCIAL TIRE
    • GOVERNMENT & LAW
    • MERGERS & ACQUISITIONS
    • BEST PLACES TO WORK
    • OBITUARIES
    • OPINION
    • MID YEAR REPORT
    • SERVICE ZONE
  • ADAS
  • Data
    • DATA STORE
  • Custom
    • SPONSORED CONTENT
  • Resources
    • Events
    • DIRECTORY
    • CLASSIFIEDS
    • SHOP FLOOR
    • AWARDS
    • ASK THE EXPERT
    • LIVESTREAMS
    • WEBINARS
    • SEMA LIVESTREAMS
    • RUBBER NEWS EVENTS
    • BALANCING
    • DEMOUNTING
    • SAFETY
    • TIRE REPAIR
    • TPMS
    • TRAINING
    • VEHICLE LIFTING
    • WHEEL TORQUE
    • Best Places to Work
  • ADVERTISE
  • DIGITAL EDITION
MENU
Breadcrumb
  1. Home
  2. News
January 28, 2015 01:00 AM

NADA: Low gas prices to drive light truck sales

Tire Business staff
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    NADA photo
    Steven Szakaly, chief economist, National Automobile Dealers Association

    SAN FRANCISCO (Jan. 28, 2015) — Low gasoline prices and pent-up consumer demand will combine to drive new car and light truck sales to an estimated 16.9 million vehicles in 2015, according to a forecast from the National Automobile Dealers Association (NADA).

    NADA said its original sales forecast for 2014 of 16.4 million new cars and light trucks was on target.

    The split among the segments in 2015 is expected to be 44 percent cars and 56 percent light trucks and SUVs because of lower gas prices, increased job growth and an improving housing market, NADA said.

    “Consumers are more able to spend for extras because of declining gasoline prices and continued low interest rates,” said NADA Chief Economist Steven Szakaly at a Jan. 23 press briefing during the NADA Convention & Expo in San Francisco.

    “We expect to see significant growth in sales of light trucks, particularly in the large-size CUV and SUV segments,” he added. “At the end of the day, consumers like the utility and comfort that larger vehicles provide. Lower gasoline prices accelerate that shift.”

    The pickup truck segment, in particular, is expected to benefit from an improving housing market, climbing to a 15.2-percent share this year from 13.7 percent in 2014, NADA said.

    On the downside, small and midsized cars are likely to face a tougher market in 2015. Mr. Szakaly said he expects incentives to rise on small and midsize vehicles while hybrid sales are expected to be slower as long as the price of oil remains relatively low.

    Midsize cars are expected to decline in share of total light vehicle sales to 17 percent from 18.6 percent, while small cars are expected to lose 1 percent of share.

    “The one area where prices and segment share are likely to remain stable is in the luxury segment,” Mr. Szakaly said. “A strong luxury brand, in any retail business, will hold extra goodwill that a consumer is willing to pay for.”

    NADA's economic outlook calls for gross domestic product to be up 3.1 percent in 2015, with the potential for growth to exceed that level.

    “The U.S. economy is poised to accelerate in 2015,” Mr. Szakaly said. “The only negative remains stagnant wages. If we see some sustained rise in incomes, GDP could easily exceed our forecast.”

    The association noted there is little threat of inflation, though key policy rates from the Federal Reserve are expected to rise 50 basis points by year-end.

    “Interest rates have to raise, admittedly the chaos in some overseas markets and the strong deflationary pressures from a rising U.S. dollar and a slowing Chinese economy leave room for rates to rise slowly,” he said.

    “The bottom line is that it will be a good year for consumers with great products that last longer, are more fuel efficient and are safer than ever before,” Mr. Szakaly said added. “It's always been about consumer choice and the benefits of a competitive market, and that is definitely what we have.”

    NADA represents more than 16,200 domestic and international new-car dealership franchises.

    Letter
    to the
    Editor

    Do you have an opinion about this story? Do you have some thoughts you'd like to share with our readers? Tire Business would love to hear from you. Email your letter to Editor Don Detore at [email protected].

    Most Popular
    1
    TBC, Mavis complete deal for NTB, Tire Kingdom stores
    2
    Kal Tire acquires Ottawa dealership Frisby Tire
    3
    EV owners say OE tires wearing out too soon
    4
    Of raiders and Wingfoots: What's ahead for Goodyear?
    5
    Update: Kenda refreshes logo
    SIGN UP FOR NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Newsletter Center

    Staying current is easy with Tire Business delivered straight to your inbox.

    SUBSCRIBE TODAY

    Subscribe to Tire Business

    SUBSCRIBE
    Connect with Us
    • Facebook
    • LinkedIn
    • Twitter
    • Instagram
    • RSS

    Our Mission

    Tire Business is an award-winning publication dedicated to providing the latest news, data and insights into the tire and automotive service industries.

    Reader Services
    • Staff
    • About Us
    • Site Map
    • Industry Sites
    • Order Reprints
    • Customer Service: 877-320-1716
    Partner Sites
    • Rubber News
    • European Rubber Journal
    • Automotive News
    • Plastics News
    • Urethanes Technology
    RESOURCES
    • Advertise
    • Privacy Policy
    • Privacy Request
    • Terms of Service
    • Media Guide
    • Editorial Calendar
    • Classified Rates
    • Digital Edition
    • Careers
    • Ad Choices Ad Choices
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • HUMANITARIAN
    • News
      • TIRE MAKERS
      • COMMERCIAL TIRE
      • GOVERNMENT & LAW
      • MERGERS & ACQUISITIONS
      • BEST PLACES TO WORK
      • OBITUARIES
      • OPINION
      • MID YEAR REPORT
      • SERVICE ZONE
    • ADAS
    • Data
      • DATA STORE
    • Custom
      • SPONSORED CONTENT
    • Resources
      • Events
        • ASK THE EXPERT
        • LIVESTREAMS
        • WEBINARS
        • SEMA LIVESTREAMS
        • RUBBER NEWS EVENTS
      • DIRECTORY
      • CLASSIFIEDS
      • SHOP FLOOR
        • BALANCING
        • DEMOUNTING
        • SAFETY
        • TIRE REPAIR
        • TPMS
        • TRAINING
        • VEHICLE LIFTING
        • WHEEL TORQUE
      • AWARDS
        • Best Places to Work
    • ADVERTISE
    • DIGITAL EDITION