Overcast78° WeatherOvercast78° Weather

Vehicles sales predicted to top 15 million in 2013

DETROIT — A healthier economy and more new model introductions should push U.S. auto sales above the 15 million mark this year, an auto industry research firm predicts.

The Polk research firm says auto sales should continue to lead the country's economic recovery, rising nearly 7 percent over 2012 to 15.3 million new vehicle registrations.

Automakers release December and full-year sales for 2012 today. Analysts think sales reached 14.5 million last year, the strongest performance since 2007 — just before Americans felt the impact of the recession.

Polk does not expect prerecession sales levels of 17 million for several more years, Anthony Pratt, Polk's forecasting director for the Americas, said Wednesday.

Polk expects 43 new models to be introduced this year, up 50 percent from last year. New models usually boost sales. The company also predicts a rebound in sales of large pickups and midsized cars.

But Polk's optimistic forecast firm hinges on Washington reaching an agreement on spending cuts, which could happen later in the year. On New Year's Day, Congress approved a compromise to avoid the so-called "fiscal cliff." The deal raises taxes for incomes exceeding $400,000 for individuals and $450,000 for couples. But it delayed action on dramatic federal spending cuts and debt, setting up another showdown in a divided Congress.

Polk predicted a handful of other trends for 2013. Sales will grow for big pickup trucks, which are very profitable for automakers. Demand has been depressed for five years due to the weak economy, but should get a lift in 2013 thanks to redesigned trucks from GM, Toyota and Ford.

Polk also said the midsized sedan segment will continue to lead the industry. It's now at 18.5 percent of the market, 2 percentage points larger than any other type of segment.

"Recent redesigns of nearly every vehicle in the midsize segment are forcing more competition and continued growth," said Tom Libby, Polk's lead North American analysts.

Polk joins many other analysts in predicting 2013 sales at or above 15 million. The consulting firm LMC Automotive, expects 2013 sales of around 15 million, up from 14.5  million in 2012.

Auto sales fell to 10.4 million in 2009, the lowest level in more than three decades.

Other reports

Here is a summary of other economic reports released Wednesday:

• U.S. manufacturing grew slightly last month and factory hiring increased. The Institute for Supply Management said Wednesday that its index of manufacturing activity rose in December to 50.7. That's up from a reading of 49.5 in the November, which was the lowest reading since July 2009, one month after the recession ended. A reading above 50 indicates growth. A measure of employment increased last month to 52.7. That's up from 48.4 in November, which was the first time the employment gauge fell below 50 in three years.

• Spending on U.S. construction projects fell in November from October because a steep drop in volatile federal projects offset another gain in home building. Construction spending dipped 0.3 percent in November, the Commerce Department said Wednesday. It was the first decline since March. The November figures were hurt by a 5.5 percent decline in spending on federal government projects.

Vehicles sales predicted to top 15 million in 2013 01/02/13 [Last modified: Wednesday, January 2, 2013 7:49pm]

Copyright: For copyright information, please check with the distributor of this item, Associated Press.
    

Join the discussion: Click to view comments, add yours

Loading...