Car Sales Pace Heads for 8-Year High in December

Fleet and retail sales of passenger vehicles in the U.S. will reach 1.5 million units this month, up 6% from December 2013, predict LMC Automotive and J.D. Power.

The firms say retail sales considered the more accurate measure of the market will reach 13 million units. That equates to a seasonally adjusted annual rate of 14.2 million units, the highest since August 2006.

LMC Automotive chief forecaster Jeff Schuster says "economic bliss" a combination of job creation, wage growth and low fuel prices will continue to drive stronger demand well into 2015.

Schuster predicts sales of cars and light trucks this year will reach 16.5 million units, including 13.6 million retail sales. The firm has raised its outlook for total and retail sales in 2015 to 17.0 million (up 200,000 units) and 16.5 million (up 100,000), respectively.

LMC also has increased its 2015 production forecast for North America to 17.4 million from 17.2 million, a 3% increase from this year's total. The firm says capacity in the region will expand by 500,000 units next year.