“How quickly does it improve and where does it go to, that remains to be seen.”
I agree with the words of General Motors’ North American Operations Head Troy Clarke. Indeed, who’s to define the fate of the auto industry for us?
Despite many auto analysts’ predictions that this year would mark the worst US sales in a decade, expecting a 17 million drop as compared to that of 2005, auto manufacturers remain hopeful.
Auto executives told the Associated Press about the possibility of federal stimulus package and lower interest rates to boost consumer confidence.
“We’re beginning to see, after six quarters of declines, the beginnings of some pent-up demand. You could make a case that the second half of the year could be significantly better,” Clarke said to AP.
Meanwhile, Ford Americas President expressed the same sentiment pointing out the importance of interest rates cut in stimulating sales.
“We do see opportunity in the second half,” he said.
Based from reports in Reuters, auto industry sales for the last six months of 2008 is forecasted to range from 16 million to 16.5 million vehicles. Would that be enough to hood research firm Global Insight’s calculation that vehicle sales will decrease by 15.5 million units this year?
Well, as Clarke puts it succinctly, that remains to be seen.