Record US auto sales in October
Spurred on by an abundance of 0% finance deals, US consumers went on an automobile buying spree in October, helping the industry achieve a record annual sales rate of 21.3 million vehicles.
Introduced as a means of kickstarting sales in the wake of September 11, this latest round of incentives have proved far more effective than any of the ‘big three’ automakers - General Motors, Ford and Daimler Chrysler - envisaged. They have also proved instrumental in reducing inventories, to the extent that all three have announced plans to increase production early in the new year, ahead of expectations.
As the US auto sector accounts for 3% to 5% of the gross domestic product, the new figures are widely seen as being good news for the economy, and an indication that consumer confidence is more robust than many had feared. Among auto industry-watchers, however, the consensus is that the costs incurred by the automakers will simply be passed down the supply chain and that the incentives will simply have the effect of stealing sales from 2002.
Nevertheless, in an economy where good news is in short supply - and which was officially declared to be in recession on Monday - the development has been widely welcomed. Released on Monday (December 3), November’s figures are expected to show an annual sales rate of 18.5 million vehicles sold - 1.9 million more than the same figure for November 2000.
