Car Sales, Car Sales, Car Sales

Since we podcasted last night just before car sales, I wanted to provide a quick update before the next time David and I take to the mic. So sing it now everyone, 'Car Sales, Car Sales, Car Sales.' I know its just not as good.

Anyway, in the midst of some pretty terrible economic news out today, including the employment report and subsequent market drop, the auto industry released some fairly encouraging figures for May.

Auto sales for the month of May rose 26% year over year to 1.3 million cars and trucks and the AP is reporting that this is the best May for auto sales since 2008. The annualized rate dipped a bit to the lowest figure since December coming in at 13.8 million units, but LMC Automotive, according to the AP, still raised its yearly forecast to 14.5 million units, up from 14.3. Not too shabby.

It appears that pent up demand, combined with some newer models, more credit availability and the drop in fuel prices are helping to keep car sales going. Although, I wouldn't be surprised if this months dismal jobs report and drop in the stock market along with fears sorrounding Europe don't limit sales just a bit next month.

Looking at some the specific automakers, Chrysler continues to make up ground gaining 30% over last year, Ford and GM each put up gains of just over 10%.

But leading the gains were Japanese automakers Toyota and Honda, gaining 87% and 48% respectively. As David and I had discussed last month, last May was when supplies of Japanese cars starting to dry up as a result of the Earthquake and subsequent tsunami. Now that they are getting back to full speed it looks like all systems go for them again.

Since I am sitting on a train and dont have full access to the usual reports that we reference I won't get too specific beyond that. David and I will try and do a brief podcast update either over the weekend or early next week with a more in depth look at the auto sales for May. Plus of course, the home made jingle.

Have a good weekend.

Source - AP (http://www.google.com/hostednews/ap/article/ALeqM5goSTfKkWFw3BgMnKuKABpkhh1OJA?docId=531f7d434f3341aa82b326605fce2a8f)