U.S. Auto Sales
By: May Ka Wong
U.S. Auto Sales has reported the highest February volume, increased 6.8% to 1.3 million since of 2001’s record. Snowstorms have hit U.S. in January which postpone consumer’s potential consumption to February, and thus driving up the sales of the month. Another factor added into the explanation would be the low interest rate plans that have been offering from dealerships which to attract more automobile market shares. In the macroeconomic view, a strong auto sales is also a result of the overall U.S. economy. An example would be a decline in the unemployment rate. It gives people more disposable income and so to afford a vehicle in their daily life. Concluding that the automobile industry is a major contributor to the growth of the economy. U.S. automakers like General Motor (GM) recorded 227825 vehicles sales in February, along with 6.6% increase in its retail sales. Japanese automakers such as Toyota Motor Corporation (TM) improved its sale by 4.1% to 187,954 units in February 2016. Honda Motor Co (HMC) has recorded a 12.8% year-over-year incline in sales reaching 118,985 vehicles.
The U.S auto sales are expected to improve further in 2016, where a rising in employment rate and personal income have come along. In addition, low oil/fuel prices is the factor that attracts consumers to turn their plan into reality. The demand of automobile is always in place, so the future trend of the automobile industry is still optimistic where pressure comes to the suppliers about the continuous to offer attractive incentives and packages to their potential customers.