Earlier this year, it seemed that the US economy was coming back strong. Jobs were more plentiful and even the banking industry was starting to approve loans again. That is until the latest unemployment numbers came out. While conditions have improved compared to this time last year, unemployment in the US is still at an staggering 9.2%. In some areas, the unemployment rate is as high as 25%, which is comparable to the Great Depression. As a result, car manufacturers that were once optimistic about the fiscal year have had to become more realistic about their projections. The auto industry was hoping to sell a total of 13 million new cars this year. Now, it seems that this number is completely unattainable.
Additionally, another major Toyota recall has caused consumer confidence to go way down. Many car shoppers will be waiting until the end of this year to get the best deal, but others are simply not convinced that they will be able to find a safe and reliable car in this market. In total, more than 11 million vehicles have been sold this year, but car makers expect the pace to slow down. With nearly five months left in the year, it is surprising to learn that car makers don’t think that they will be able to meet their estimates. Hopefully, a few well timed promotions in the fall will help the automotive industry to meet its previous estimates and start the beginning of 2012 off on solid footing without having to reduce prices.
