Tuesday, January 5, 2010

Auto Industry Stabilizes as Ford, Toyota Post U.S. Sales Gains

“People are waking up and realizing the world didn’t end and are starting to return to showrooms,” said Aaron Bragman, a forecaster at IHS Global Insight in Troy, Michigan. “It’s way too early to say the trend is pointing north, but if it continues this quarter, it’s a positive sign.”

This don't bet against the US consumer, or the realization that the world didn't end logic towards consumption trivializes the forces driving these trends. The well-timed cash for clunkers promotion provided a short-term boost by pulling from future consumption. Despite that, vehicle sales still posted a series of YOY declines. This series is destined to roll over again without restoration of sustainable job creation and easy credit.

Auto Sales (AS) and YOY Change:

Source: bloomberg.com

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