DBRS Commentary: U.S Light Vehicle Sales Trending Sharply Higher

According to a DBRS commentary published today, light vehicle sales in the United States have continued to improve progressively since 2009, when automotive demand collapsed in the wake of the global economic downturn. “While the 12.8 million units we saw last year represents a significant increase vis-à-vis 2010, we note that such volumes are still well below the range of 15 million to 16 million units that typically prevailed prior to the downturn,” says Robert Streda, Vice President at DBRS.

DBRS had anticipated that U.S. sales volumes would continue to grow in 2012 in line with the protracted recovery of the industry, with an initial forecast for the year estimating total volumes of approximately 13.5 million units. However, early sales results in 2012 have thus far significantly exceeded expectations. Industry sales in January totaled roughly 913,000 vehicles, which translates to a seasonally adjusted annual rate (SAAR) of 14.2 million units. February and March sales were even stronger, with the monthly SAAR amounting to 15.1 million units and 14.4 million units, respectively. “The strong sales early this year have caused us to revise our 2012 U.S. light vehicle sales forecast moderately upward to the range of 14 million to 14.5 million units,” notes Mr. Streda. The primary contributing factors to the stronger U.S. sales are assessed within the commentary.

A copy of this commentary is available by contacting us at info@dbrs.com.