Autoblog http://www.autoblog.com Autoblog http://www.blogsmithmedia.com/www.autoblog.com/media/feedlogo.gif Autoblog http://www.autoblog.com en-us Copyright 2012 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[Auto sales credited with half of U.S. economic growth]]>http://www.autoblog.com/2012/05/14/auto-sales-credited-with-half-of-u-s-economic-growth/http://www.autoblog.com/2012/05/14/auto-sales-credited-with-half-of-u-s-economic-growth/http://www.autoblog.com/2012/05/14/auto-sales-credited-with-half-of-u-s-economic-growth/#commentsFiled under: , ,

Car lot with American flags

The auto industry has long been a cyclical business, and though this last trough was a deep one, the coming boom has economists excited. According to Bloomberg, the auto industry's comeback contributed fully half of the 2.2 percent national economic growth in the first quarter of this year. Auto sales are on target to top 14 million vehicles this year, the best pace in four years.

Production is up at all three domestic carmakers, which has a ripple effect throughout the economy. Bloomberg cites Chad Moutray, chief economist of the National Association of Manufacturers, who estimates that every dollar spent on a new vehicle leads to an addition $2.02 in economic activity. The industry's share of gross domestic product for the quarter was 2.8 percent, which is nearly as high as it was in 2007, before the economic crisis that devastated the industry, according to the report.

Yet despite the rise in fortunes for carmakers, stock prices have yet to follow suit. A key automotive index is up just 1.5 percent so far this year, but is down 31 percent in the past 12 months, according to the report. The U.S. Treasury Department recently indicated that because of lagging stock prices, it would not be divesting its share of General Motors stock anytime soon.

Auto sales credited with half of U.S. economic growth originally appeared on Autoblog on Mon, 14 May 2012 12:58:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>auto salescar saleseconomic growtheconomic recoverygross domestic productnew car salesu.s. economyMon, 14 May 2012 12:58:00 EST http://www.autoblog.com/feed/20237593/article-comments.xml http://www.autoblog.com/feed/2012/05/14/auto-sales-credited-with-half-of-u-s-economic-growth/20237593/article-detail.xml 20237593 http://www.blogcdn.com/www.autoblog.com/media/2012/05/car-dealer-opt_thumbnail.jpg http://www.blogcdn.com/www.autoblog.com/media/2012/05/car-dealer-opt.jpg <![CDATA[U.S. auto sales predicted to plummet to 13.4 million in 2009]]>http://www.autoblog.com/2008/10/08/u-s-auto-sales-predicted-to-plummet-to-13-4-million-in-2009/http://www.autoblog.com/2008/10/08/u-s-auto-sales-predicted-to-plummet-to-13-4-million-in-2009/http://www.autoblog.com/2008/10/08/u-s-auto-sales-predicted-to-plummet-to-13-4-million-in-2009/#commentsFiled under: ,

Light-vehicle sales in the U.S. are expected to continue their decline in 2009. Global Insight, a firm that has been forecasting sales since the 1960s, is predicting sales of 13.4 million units next year. That figure is slightly down from the 13.8 million units automakers are expected to sell in 2008. (For comparison to recent years, 16.1 million vehicles sold in 2007 and 16.5 million units sold in 2006.) Global Insight makes note of the current U.S. credit crisis and the worsening global economy, citing the worldwide financial situation is more detrimental to auto sales than oil at $200-a-barrel. When oil is high, at least the countries benefiting from the oil profits continue to purchase cars - unlike today. While analysts differ on when we may see a turnaround, the firm feels it could take until 2013 for sales to recover to levels seen just a few years ago.

[Source: Automotive News, subs. req'd]

U.S. auto sales predicted to plummet to 13.4 million in 2009 originally appeared on Autoblog on Wed, 08 Oct 2008 18:59:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>auto salesAutoSalesdeclineGlobal InsightGlobalInsightrecessionU.S. Auto salesu.s. economyU.s.AutoSalesU.s.EconomyWed, 08 Oct 2008 18:59:00 EST http://www.autoblog.com/feed/1336502/article-comments.xml http://www.autoblog.com/feed/2008/10/08/u-s-auto-sales-predicted-to-plummet-to-13-4-million-in-2009/1336502/article-detail.xml 1336502 http://www.blogcdn.com/www.autoblog.com/media/2008/10/crystal_ball_250_thumbnail.jpg http://www.blogcdn.com/www.autoblog.com/media/2008/10/crystal_ball_250.jpg <![CDATA[Obama calls GM a "sobering reminder" of U.S. economy woes]]>http://www.autoblog.com/2008/07/15/obama-calls-gm-a-sobering-reminder-of-u-s-economy-woes/http://www.autoblog.com/2008/07/15/obama-calls-gm-a-sobering-reminder-of-u-s-economy-woes/http://www.autoblog.com/2008/07/15/obama-calls-gm-a-sobering-reminder-of-u-s-economy-woes/#commentsFiled under: , ,

A quick glance at today's announcements from America's largest automaker is an easy indicator that the U.S. auto market, at the very least, is under as strong as recession as could be imagined. According to Presidential hopeful Barack Obama, the entire industry as a whole is facing a "perfect storm" of "record gas prices, rising steel prices, a credit market contraction that has made it more difficult for consumers to purchase autos, and a weakening economy that has shed jobs for six straight months."

As the auto industry goes, so go the livelihoods of countless workers -- both directly employed by the Detroit 3 and indirectly supported by suppliers, dealers and the like -- making today's announcements from GM a "sobering reminder" of the current state of the U.S. economy. Still, Obama holds out hope that the right Federal policies could dig the industry out of the hole it currently finds itself in. What it likely doesn't mean, though, is a bailout, according to Obama's likely opponent, John McCain, and U.S. Secretary of Commerce Carlos Gutierrez.

[Sources: The Detroit Free Press, The Detroit News]

Obama calls GM a "sobering reminder" of U.S. economy woes originally appeared on Autoblog on Tue, 15 Jul 2008 17:01:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>american economyAmericanEconomybarack obamaBarackObamageneral motorsGeneralMotorsgmu.s. economyU.s.Economyus economyUsEconomyTue, 15 Jul 2008 17:01:00 EST http://www.autoblog.com/feed/1256393/article-comments.xml http://www.autoblog.com/feed/2008/07/15/obama-calls-gm-a-sobering-reminder-of-u-s-economy-woes/1256393/article-detail.xml 1256393 http://www.blogcdn.com/www.autoblog.com/media/2008/06/obama_thumbnail.jpg http://www.blogcdn.com/www.autoblog.com/media/2008/06/obama.jpg -1 2