What difference only three years can make: in 2009, U.S. sales had dipped to their lowest point in the last 25 years, while sales in China were increasing exponentially.
Today, the picture is quite different. The U.S. auto market has recovered and according to a report from Autonews, it may be the safest bet for profitable growth. Emerging markets including China, India and Brazil, which until recently looked like the land of opportunity for carmakers, are slowing down.
“The U.S. is now the high-growth market in the world as much as India or China”, said senior partner for Boston Consulting Group, and adviser to the 2009 government bailout of GM and Chrysler, Xavier Mosquet. “The worst thing five years ago was to be a U.S. automaker or supplier. Now it’s the best thing to be.”
U.S. light-vehicle sales increased by 10 percent or 1.19 million to 12.8 million compared to 2010. It was also a substantial increase from 2009’s 10.4 million sales.
On the contrary, China’s new car deliveries increased by 3-5 percent in 2011, the lowest number in the last 12 years according to the China Association of Automobile Manufacturers, which will release annual data this week.
This is probably the first time since 1998 that U.S. sales rose faster than in China and quite a turnaround from the 2009 bankruptcy of GM, Chrysler and many of their suppliers.
What’s more, 10 analysts surveyed by Bloomberg forecast that in 2012, the U.S. market will rise again, by nearly 5.6 percent. Detroit’s Big 3 are rolling out one new model after another, while many foreign automakers are increasing their North American plants’ production further reinforcing the U.S. economy.
Some analysts, like Mike Jackson, CEO of America’s largest retailer of new cars and trucks AutoNation Inc., are even more optimistic about the next couple of years: “The vehicles in America are old and wearing out. We are going to take another step in the recovery this year and we’re on a journey back to 15.5 million to 16 million units as soon as 2013”, he said.
