—Auto Industry Is On Track for Improvement Over 2011—
In 2011, the industry finally recovered from the recession-era slump, with full-year sales totaling approximately 13 million units. Although still early in the year, forecasts for 2012 show sales could total from 13.8 million to 14.4 million units, barring any unforeseen events.
Although these sales levels do not quite match the records set in the
mid-2000s, the improvement is a bright spot for the U.S. economy,
"The demand for OEM parts and tires is significantly influenced by sales of new vehicles," Bloore said. "As more cars are produced to keep up with higher levels of consumer demand, more parts and tires are needed to fuel those production levels. The boom in sales bodes well for many of the suppliers to major OEMs."
News also has been positive for the automotive aftermarket industry, as consumers have been keeping their cars longer, improving demand for replacement and maintenance parts. However, skyrocketing prices at the pump often have a negative impact on miles driven, as wallet-conscious drivers choose to put off long trips to save money. The same monetary concerns have resulted in stagnant sales of aftermarket accessories. These cosmetic and performance enhancing items, such as rims and chrome accessories, are discretionary in nature and do not perform well during periods of economic decline.
For more information about industry trends in auto parts, download Great American Group's newest quarterly Auto Parts/Oil and Gas Monitor at http://www.greatamerican.com/news_media/downloads/May_Auto_Monitor.pdf.
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