Car industry's good times 'on hiatus'
US Toyota dealers report customer traffic downturnA top Toyota Motor Corp executive told dealers that the good times experienced by the industry in the past decade "are temporarily on hiatus".
But Jim Lentz, president of Toyota Motor Sales USA, said that after what is expected to be a down year in the US, the industry's future is bright.
Lentz told the American International Automobile Dealers Association annual meeting that even strong Toyota dealers are reporting customer traffic down as much as 60 per cent this year.
"I know that things are out of kilter a little bit," he said.
But Lentz predicted the start of a recovery in the second half of the year, with US sales for the year at 16 million, down only slightly from last year.
"Hang in there. The skies will clear and things will get better," he told the group of mostly foreign brand dealers.
Lentz said 16 million in sales is still a solid year, and once was a big enough number to be considered a great year.
He still predicted that Toyota sales would rise this year, even in a down market. The Japanese automaker's sales have grown briskly in recent years, sometimes by double-digit percentages, as people bought its smaller, fuel-efficient cars with a reputation for reliability.
Toyota sales were up three per cent last year despite a 2.5 per cent decline in the US market overall as consumers fretted over high gas prices, falling home prices and the economy.
But Lentz said wages and productivity are up, and inflation and interest rates remain low. Interest rate cuts and a federal economic stimulus package should lead to a stronger 2009 and even better years in the coming decade, he said.
The US population is growing, baby boomers are living and driving longer, and young consumers are entering the car market in record numbers, he said.
These factors, he said, could combine to drive the US auto market back to the good times, he said.
"It is possible for the auto industry to hit 18 million sales annually sometime later in the next decade," he said.
Source: AAP 2008
To comment on this article click here
Tags
Please see our Editorial Guidelines & Code of Ethics (including for more information about sponsored content and paid events). The information published on this website is of a general nature only and doesn’t consider your particular circumstances or needs.
