Storm Brewing: Is the U.S. Auto Market Set to Dip?
With the U.S. dollar struggling mightily against other of the world’s currencies, and domestic buyers still caught up in the morass of the sub-prime mortgage problems, pundits are predicting a downturn in American auto sales is on the horizon.
(Click through the link for more on the projected downturn, including Toyota's plans for the future.)
With sales across the industry set to dip or stay flat in the upcoming year, experts say that the largest downturn in the last fifteen years of the industry could be upon us. The worst outlooks point to a number of 14.5 million in total sales, or the same number as was sold in the recession slowed 1993. Even the more optimistic economists are looking at a decrease of three to five percent over last year, with total sales of about 15.5 million units.
As one of the new leaders of American auto sales, Toyota would figure to be hard hit by a U.S. slowdown, despite the launch of major new products for the automaker. With gains expected in the Scion brand with the new xB and xD, Toyota also has high hopes for its box-fresh Corolla and Matrix.
Even if Toyota were able to maintain its sales numbers from 2007 over the next year, that stasis would represent the worst year-over-year sales for the company since 1998. All of which begs the question, with Toyota a new sales juggernaut on the U.S. scene, what will it take to slow the company down?
Do you have an insight into Toyota’s next year? Share it with others in ‘comments’.
+ Motor Authority: U.S. auto sales could slow, Toyota not worried
Comments
The Stig
My opinion - every manufacturer is going to take a hit. Some will be able to ride it out better than others. It's going to be a long bumpy road - and this comes from someone who works in the financial world.
mo
isn't that better for the american industry. i mean now ppl are buying from america as the dollar is low. ppl are prefering american products (including cars) as now it is getting cheaper compared to european or asian products. that sounds good, am i missing something??
smokyburnout
@mo- yeah, that does sound good... but i haven't heard any reason to believe that is actually happening.
Ducati Minor
It happens. You are not going have sales climb every year forever.
ziggy
Some manufacturers are talking about selling sub $10k cars in the U.S.- when the economy goes down those will be the ones that will sell.
Throopspeed
"Fasten your seatbelts, It's going to be a bumpy ride"
Jim
The biggest hit might be to cars in the 'near luxury' niche, 3-Series Bimmers, C-Class MB, etc, and similarly priced SUV's and trucks. Pretty much anything in the $30K-$50K price range.
All those folks who used their homes as piggy banks to fund luxury purchases will not have that option so they'll need to cutback on something.
rick
is that the new corolla? booorrrinngg. toyotas sell based on beings toyotas only. all those with eyes and passion look elsewhere.
Russ Bellinis
Recessions happen. Every year can't be a banner year for auto sales. Part of the roblem for the American dollar is that a World economy is turning America into THE consumer nation while everybody else is scrambling to be the manufacturing nation to sell their goods to Americans. Sooner or later the well has to run dry.
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