The automobile industry has been instrumental in the improvement of GDP of the US economy. Some of the leading auto companies like Ford, General Motors and Chrysler had done a good business in the last year.
Compared to the sales in 2011 the hike was over 13% and it is estimated that the domestic economic growth was close to 30% during the first half of last year. Automakers like General Motors, who also supply cars in India, had sold over fourteen million vehicles in 2012 in US.
Let’s analyze the stats from various companies and note what the analysts had to say:
General Motors Statistics
Sometime back the President of General Motors had commented that-“what is good for General Motors is good for the country” and there is a lot of truth in this statement. Taking the 2012 year for US it must be acknowledged that the boost in the economy has been certainly affected by the hike in the sale of automobiles. General Motors share prices rose to $28.83, and that was over 42% rise compared to 2011.
What do Ford, Chrysler, Toyota Statistics say?
Taking consideration of different prominent automobile icon- Ford, their share prices rose to $12.95 at the end of the year, and that was close to 20% improvement. Compared to the last five years the automobile industry had the best market in the last year. Whereas GM sold nearly 2.6 million vehicles, Ford sold 2.17 million and Chrysler over 1.65 million vehicles. For Chrysler, the most popular models were the New Dart Compact and the Journey SUV. As for Ford the best market was captured by the Lincoln models. Toyota, another prominent brand, did a better business with the LMV’s and light trucks.
Opinion of Analysts
Doesn’t the above list of statistics imply a bright future for America? Analysts are of the opinion that this rising demand has been a boom to the economy, and the pent-up demand is being satisfactorily met up with the automobile makers. Are you aware that the average life of a particular car in US is eleven years? Well this year seems to see a boost in the replacement of the old cars. Analysts are hopeful that the market will grow further in North America where the sales are at their peak now. The analysts are of the opinion seeing the rising performances of Ford and GM. They are also of the opinion that the LMV registration will rise by 6.6 per cent. Fifteen million cars will be further produced, in the genre of SUVs and pick-up trucks with 43 new models speculated to emerge and sixty others getting a fresh look! Definitely newer models and innovated looks will pose a better prospect for the US economy in the year 2013-14.
The Future of the Auto Industry
The future seems to be very promising for the US economy with GM, Toyota and Ford creating innovated pick-up trucks in the next two years. The last time we saw a similar model from GM was in 2006 but last month we had news that they have initiated some new models. And this is also quite expected that non luxury cross-over vehicles will definitely emerge because of the fuel charges. You must have also noticed the rising competition of mid-sized vehicles in terms of fuel efficiency and price and also the low interest rates.
Honda is also doing its best for the US economy and few days back the EXL Accord deal has been shipped out to South Korea. Let’s hope export earns more dollars for the US economy!