US auto market remains “very fragile”

US autos May10.pngUS auto sales (black line) in April showed welcome improvement versus 2009, but were still a long way short of earlier demand levels.

They were up 19% versus April 2009. But even with this improvement, they were down by 24% by comparison with 2 years ago. On an annualised basis, they were only 11.2m versus 14.8m in April 2008.

And it seems that although companies continued to offer major incentives (an average $2800/sale in March), these had less impact in April. Analysts, who monitor incentives, noted that “people are reining in their spending. We see the recovery as being very fragile“.

About Paul Hodges

Paul Hodges is Chairman of International eChem, trusted commercial advisers to the global chemical industry. He also serves as a Global Expert for the World Economic Forum. The aim of this blog is to share ideas about the influences that may shape the chemical industry and the global economy over the next 12 – 18 months. It looks behind today’s headlines, to understand what may happen next in critical areas such as oil prices, China and Emerging Markets, currencies, autos, housing, economic growth and the environment. Please do join me and share your thoughts. Between us, we will hopefully develop useful insights into the key factors that will drive the industry's future performance.

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