Economy, Auto Industry | featured news

... the auto industry is weighing in with what appears to have been a solid February – buoyed by a recovery in another key sector of the economy. “The housing sector has now joined auto sales in propelling the U.S. economy forward,” said Kurt McNeil, vice president of U.S. sales operations for General Motors, which reported a 7% increase, year-over-year.

An auto industry research firm says an improving economy and a host of new models should push U.S. auto sales above 15 million this year.

Retail sales fell in October for the first time in three months as superstorm Sandy slammed the brakes on automobile purchases, suggesting a loss of momentum in the fourth quarter.

U.S. retail sales rose in September as Americans bought more cars and gasoline, while a gauge of consumer spending pointed to stronger-than-expected economic growth in the third quarter.

Retail sales in the U.S. increased in August by the most in six months, boosted by demand for automobiles along with higher gasoline prices that left consumers with less to spend on other goods. The 0.9 percent gain followed a revised 0.6 percent advance in July that was smaller than initially reported, the Commerce Department said today in Washington. The median forecast of 84 economists surveyed by Bloomberg called for an increase of 0.8 percent. Sales slowed at department stores, apparel retailers and electronics outlets.

Strong pickup demand fueled a big jump in U.S. auto sales last month. GM's August U.S. sales rose 10 percent compared with a year earlier, while Ford's rose 13 percent and Chrysler's 14 percent. Most automakers reported strong gains as Americans flowed into dealer showrooms, drawn by model-year closeouts, low-interest financing and appealing new models. Analysts expect overall sales to rise around 20 percent when companies finish reported later Tuesday.

U.S. auto sales remained soft in July and all three Detroit automakers reported sales for the month that fell slightly short of analyst estimates, as high U.S. unemployment and weak consumer confidence kept would-be buyers on the sidelines.

Romney’s remarks make little sense. Not only is his claim of creating 100,000 jobs at Bain untenable, but also his assertion that 100,000 jobs have been lost in the auto industry “on the president’s watch” does not add up. Yes, there were some painful cuts in the auto industry at the start of Obama’s presidency, largely because tough choices had to be made. One could argue whether those choices were necessary or effective, but the bottom line is clear: No matter how you slice it, jobs overall have grown substantially in the auto industry under Obama. In fact, it is one of the bright spots of today’s economy.

When it comes to the economic recovery, timing is everything — and so far, it’s been off. Take the market performance of housing and autos, two big-ticket purchases that traditionally have moved in tandem. But new data released this week showed housing prices and new home sales dropping off at the same time that auto sales were peaking.

The auto industry looks set to ride the appeal of smaller cars to its best monthly performance since 2008. Chrysler reported a 34 percent increase in March auto sales.