Ford Expecting Better Industry Sales in 2010
It looks like 2010 is ending on a good note for the auto industry, setting things up for a better year in 2011.
"I have a high degree of confidence that 2011 is going to be a stronger sales year," said Ford sales analysis manager George Pipas. "It certainly looks like the jumping off point is going to be in the 12 million range, which is very encouraging."
Pipas telling reporters that December will most likely be the third consecutive month to see an annual sales rate topping 12 million. That, he says, shows that consumers are returning to the market.
"What a flip from a year ago," said Pipas. "Because this year, 2010, we're ending the year with the highest sales rates of the year."
Sales for the fourth quarter of 2010 are higher than any quarter since the summer of 2008, before the recession, Pipas says. That includes the third quarter of 2009, which was pushed on by "Cash for Clunkers."
The strongest segments in 2010 were pickup trucks and crossovers, says Pipas. But, he adds that the pickup segement was coming off of a very tough year. Crossovers, however, have gained market share every years since 1995, a trend that shows no sign of slowing.
The small car segment declined a bit this year. But, Pipas says that was because of high unemployment among young people, 50 per cent of whom buy small cars. A better employment situation among the young, combined with new product in the marketplace, should help small car sales in the coming year.
"There's more pent up demand in the small vehicle market than any other segment of the industry," said Pipas. He said the new Fiesta small cars has brought people to Ford who hadn't considered the brand before, and expects the same thing from the all new Focus, which debuts early next year.
High unemployment and a weak housing industry remain the major risk factors going forward. Pipas adding that despite the relative improvement in car sales, 2010 will be the second worst year since the early 1980's.
Still, what the industry is looking for as we pull out of the recession is positive trends. That, Pipas says, is what we're starting to see.
"The consumer demand is not trending down. It's trending up. So, that's a good sign for 2011."
