DOW JONES NEWSWIRES
J.D. Power & Associates projects slightly higher new-vehicle sales for November in the U.S. from a year earlier, adjusted for two fewer sales days this year, on strong fleet sales and economic stabilization, a signal the industry is "on the mend."
The news follows some pleasant earnings surprises from auto makers. Ford Motor Co. (F) and Toyota Motor Corp. (TM, 7203.TO) posted profits in the third quarter and boosted utlooks. The auto industry has been one of the hardest hit in the recession.
Total U.S. new-vehicle sales are projected up 0.4% from a year earlier, although retail sales are seen down 0.4%. Fleet sales--which many auto makers amid their restructurings have been lessening because they are generally less profitable--are estimated to post a 3.5% increase. The figures are adjusted based on there being 23 selling days this year and 25 last year. Unadjusted, total sales would be down an estimated 7.7% to 687,800 units.
If the overall adjusted growth materializes, it follows an October in which sales hit their highest level in more than a year, excluding the summer's boost from "cash for clunkers."
"As expected, the recovery has been slow, but is progressing," said J.D. Power's Jeff Schuster. He cited the industry's higher level of discipline, which has resulted in the highest sales prices in years, indicating a healthier close for the fourth quarter.
J.D. Power is adjusting its forecast for 2009 slightly, maintaining total sales at 10.3 million units but decreasing retail sales to 8.5 million units from 8.6 million units. It affirmed its 2010 forecast.
The overall sales rate in November, based on J.D. Power's estimate, would be 10.2 million, down from October's 10.5 million rate.
J.D. Power is part of McGraw-Hill Cos. (MHP).
-By Joan E. Solsman, Dow Jones Newswires; 212-416-2291; joan.solsman@dowjones.com