US auto sales May Increase: What About US Car Makers?

Amidst so many bad news, it is good news. The auto sales in USA has perhaps increased a bit in January 2007. If this trend continues then the sales figure may shine brightly at the end of the year.

Sydney Morning Herald reported:

Cuts in production and lower sales to fleet customers are expected to weigh on overall January US auto sales by General Motors and Ford, but Asian automakers likely will gain more ground.

Industry-wide, sales for the month could be up nearly one per cent to nearly 1.2 million compared with January 2006, when strong fleet sales propped up results, according to estimates from Edmunds.com, a research website for car buyers. Companies report January sales on Thursday.

Jesse Toprak, chief economist for Edmunds.com, said Toyota Motor likely will post double-digit gains and Honda's sales could rise nearly 10 per cent. Despite a recent retreat in gas prices, he said fuel efficiency - a strong point for Toyota and Honda - remains key.

"Consumers have no confidence in gas prices," Toprak said.

Although the market is expanding in the US, things do not look that bright for US automakers. Toyota is covering grounds in the US. The Year 2007 seems to be a bright one for Toyota.