Massachusetts-based research company IHS Automotive has lowered its estimate for US light vehicles sales in 2011 by 200,000 units, to 12.5 million. Analyst Rebecca Lindland commented that IHS has also significantly trimmed its forecast for 2012 sales, from 14.7 to 13.5 million vehicles, as well as 2013, from 15.5 to 15 million.
IHS is not the only researcher predicting a fall in new car sales in the US. JPMorgan Chase & Co. also reduced its estimates for 2011 and 2012 by 700,000 vehicles. Even carmakers including General Motors and Ford, said that they expect 2011 sales to be in the 12.5-13.5 million units range, due to the unstable economy.
These predictions seem to contradict actual 2011 sales which increased by 11% from January through July.
However, the estimates are on solid evidence: the inventory shortage of Japanese companies due to the March 11 earthquake, increasing gasoline prices, the overall state of US economy and high levels of unemployment.
In addition, the recent global turmoil in the stock market isn’t exactly an encouraging sign that the recession will end sometime soon.
Story source: Autonews
