World auto sales: Record year expected

J.D. Power projects global light vehicle sales to hit a record 76.5 million in 2011.

By TheStreet Staff Feb 15, 2011 1:55PM

By Ted Reed, TheStreet

 

As GM (GM) touted its commitment to China in a Beijing media briefing, a new J.D. Power forecast said global auto sales will likely set a new record this year.

 

The consulting firm said it expects global light vehicle sales of 76.5 million units in 2011, 6% higher than the existing record of 72 million light vehicles sold in 2010.

 

The report is one more sign that the world's primary manufacturing industry is poised for continuing gains during the current year.

 

"Overall growth in the world economy has been supporting further recovery in auto sales," said John Humphrey, senior vice president of automotive operations at J.D. Power, in a prepared statement. "We're seeing signals of stability and increased consumer demand for new vehicles as economic optimism increases."

During 2010, sales growth occurred in North America, South America and Asia, where growth in China was key. Western Europe was a notable exception, as sales suffered due to the expiration of government-sponsored vehicle scrappage programs.

 

U.S. sales rose 11% to 11.6 million. European sales were flat at 18.2 million units, while western European sales declined 4%. China sales rose about 30% to 17.2 million while Indian sales rose about 30% to 2.7 million, J.D. Power said.

 

In statements Tuesday, Ford (F) and GM both touted successes in regions where they are historically strong.

 

Ford said that January sales in 51 European markets were stable at 114,100 units, up by 100 units, with strong sales in Eastern Europe, Russia and Turkey offsetting a 5.2% decline in 19 traditional Western Europe markets. Ford reported an 8.2% share of passenger car sales in Europe in January, down 0.2% from a year earlier, while total vehicle share was 8.3%, down 0.5%.

Meanwhile, GM CEO Dan Akerson told reporters in Beijing that GM will continue to invest aggressively in China, where it remained the sales leader in 2010, when the company and its affiliates sold a record 2.35 million vehicles.

 

"GM will continue to make China one of our priorities," said Akerson. "We plan to introduce more than 20 new and upgraded models over the next two years."

 

 J.D. Power noted that emerging markets accounted for 51% of global light vehicle sales in 2010, the first time emerging markets account for more than one half of sales.

 

Related Articles

0Comments

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

STOCK SCOUTER

StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

118
118 rated 1
270
270 rated 2
472
472 rated 3
714
714 rated 4
624
624 rated 5
608
608 rated 6
623
623 rated 7
445
445 rated 8
319
319 rated 9
125
125 rated 10
12345678910

Top Picks

SYMBOLNAMERATING
AAPLAPPLE Inc10
ATVIACTIVISION BLIZZARD Inc10
BIDUBAIDU Inc10
BMYBRISTOL-MYERS SQUIBB CO.10
CELGCELGENE CORP10
More

VIDEO ON MSN MONEY

ABOUT

Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.