Mexican Media Brands
Forecast: U.S. Car Sales to Peak at 18.2 Million in 2017
IHS Automotive predicts light-vehicle sales in the U.S. will climb to a record 18.2 million units over the next two years, then ebb slowly as prices and interest rates rise.
#economics
Share
IHS Automotive predicts light-vehicle sales in the U.S. will climb to a record 18.2 million units over the next two years, then ebb slowly as prices and interest rates rise.
IHS forecasts sales will grow 5% to 17.3 million vehicles this year, 3% to 17.8 million in 2016 and 2% to the 18.2 million peak in 2017. The firm then expects volumes to slip to 18 million in 2018, 17.7 million in 2019 and 17.3 million in 2020.
Today's sales are being buoyed by cheap fuel, a growing jobs market and a flood of new products, according to IHS. The firm adds that the average term for a car loan, currently at nearly 65 months, is likely to continue to lengthen.
IHS says an inevitable hike in the prime lending rate eventually will add a few thousand dollars to the cost of financing a new car or truck, thus damping demand.
RELATED CONTENT
-
China and U.S. OEMs
When Ford announced its 3rd quarter earning on October 24, the official announcement said, in part, “Company revenue was up 3 percent year over year, with net income and company adjusted EBIT both down year over year, primarily driven by continued challenges in China.” The previous day, perhaps as a preemptive move to answer the question “If things are going poorly in China, what are you doing about it?, Ford announced that it was establishing Ford China as a stand-alone business unit.
-
Enterprise Edges into Self-Driving Car Market
U.S. rental car giant Enterprise Holdings Inc. is the latest company to venture into the world of self-driving vehicles.
-
Mazda, CARB and PSA North America: Car Talk
The Center for Automotive Research (CAR) Management Briefing Seminars, an annual event, was held last week in Traverse City, Michigan.