Car Market Is Stepping To Recovery
The financial crisis that erupted ...
The financial crisis that erupted in world markets about two years ago, dealt a severe blow on practically all branches of industry. One of the most affected industries was car market. Last year sales of passenger cars in the U.S. fell to 27-year low, reports Reuters.
However, the world economy is gradually recovering from the crisis. Automakers are optimistic about the future and make bets on the 10-percent growth in the American car market in 2010.
Moreover, this week General Motors along with Toyota Motor Corp and Honda Motor Co, said they planned to increase production volumes in the United States. Now, instead of the suspension and dismissal of employees of factories more automakers are gradually beginning to return to pre-crisis levels of production.
This optimism has its base. According to a former economist at GM Paul Boley, this is a normal reaction to the crisis. "Similarly it happened during the recession of the early 90s of the last century," - he said. Paul Boley adds that the American auto industry will need a couple of years to return to the pre-crisis levels of production cars. "The industry is recovering, but very slow" - the expert believes.
He estimates that sales of new cars in the U.S. will grow up to 2010 up to 12 million units. Already some 13 million cars will be realized in 2011 in the United States; and about 15 million units in 2012. Such sales volumes are significantly higher than in 2009, when the number of cars sold in the U.S. declined by 20%, to 10.4 million units.
The most interesting is that similar predictions give all the major automakers. Ford, the only American car manufacturer, which managed to avoid the reorganization, forecasts up to 11.5 million units in 2010. "I do not think that there will be any new problems. At the end of this year we will see improvement in the global market", - believes Ford senior research analyst George Pipas.
Experts of J.D. Power and Associates and IHS Global Insight are also predicting growth of the U.S. market until at least 11.5 million vehicles. "Our projections are conservative enough, and it is possible that by the year-end market growth will surpass our highest expectations," - says the executive director of global forecasting unit JD Power Jeff Schuster.
In turn, an analyst at IHS Global Insight Rebecca Lindland believes that the outcome of this year in the United States can be realized about 12 million cars. "There is potential for growth in this market, because right now there is pent-up demand", - emphasizes the expert.
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