J.D. Power and LMC Automotive Report: New-Vehicle Retail Sales Kicking Off
2013 Ahead of Expectations
WESTLAKE VILLAGE, Calif., Jan. 25, 2013
WESTLAKE VILLAGE, Calif., Jan. 25, 2013 /PRNewswire/ -- The January
new-vehicle selling rate is off to a strong start in 2013, with the highest
retail selling rate in January in five years, according to a monthly sales
forecast developed by J.D. Power and Associates' Power Information Network®
(PIN) and LMC Automotive.
Retail Light-Vehicle Sales
January new-vehicle retail sales are expected to come in at 812,600 vehicles,
which represents a seasonally adjusted annualized rate (SAAR) of 12.9 million
units, and well ahead of the expected 12.4-million-unit annual level for 2013.
Retail transactions are the most accurate measurement of true underlying
consumer demand for new vehicles.
"The year is off to a fast start, which bodes well for the remainder of 2013,"
said John Humphrey, senior vice president of global automotive operations at
J.D. Power and Associates. "Building on the momentum the industry has been
gaining over the past two years, sales remain on a trajectory to return to
pre-recession levels within the next few years."
Total Light-Vehicle Sales
Total light-vehicle sales in January 2013 are projected to reach 1,027,700
units, an eight percent increase from January 2012. Fleet share is expected to
reach 21 percent, considerably lower than the 25 percent share in January
2012, signaling continued discipline in the industry-related rental car fleet
^1Figures cited for January 2013 are forecasted based on the first 15 selling
days of the month.
^2The percentage change is adjusted based on the number of selling days in the
month (25 days in January 2013 vs. 24 days in January 2012).
J.D. Power and LMC Automotive U.S. Sales and SAAR Comparisons
January 2013^1 December 2012 January 2012
New-Vehicle Retail 1,136,484 units 682,171 units
Sales (14% higher than January
Total Vehicle Sales 1,353,418 units 911,370 units
(8% higher than January
Retail SAAR 12.9 million units 12.0 million 10.9 million
Total SAAR 15.0 million units 15.2 million 13.9 million
Based on a strong finish in 2012 and a higher-than-expected pace to begin
2013, LMC Automotive is increasing its 2013 U.S. forecast for total
light-vehicle sales by 100,000 units to 15.1 million. In addition, the outlook
for retail light-vehicle sales increases to 12.4 million units from 12.2
million units for 2013.
"The global industry is looking for the United States to offset risk in Europe
and potentially slower growth in the emerging markets in 2013," said Jeff
Schuster, senior vice president of forecasting at LMC Automotive. "The good
news is that the U.S. market is primed to over-deliver as the recovery heats
up. The concern now is shifting from the continuing recovery to whether the
automotive supply base will be able to keep up with hearty demand."
North American Production
North America light-vehicle production was 15.4 million units in 2012, 18
percent higher than in 2011, marking the first time since 2007 that North
American production has surpassed 15.0 million units.
Vehicle inventory returns to an ideal level in early January to a 59-day
supply, compared with 69 days in December. A strong sales pace in November and
December 2012, coupled with the holiday production shutdown period in late
2012, drove inventory down to the current level. Overall, there are
approximately 3.1 million units currently available on dealer lots or in
transit—an increase of about 600,000 units from January 2012.
LMC Automotive projects the 2013 North American production to be 15.9 million
units in 2013, a three percent increase from 2012, with further upside
potential contingent on the pace of demand in the first half of the year. For
2014, the North American production forecast is expected to increase to 16.6
"With inventory in check and demand remaining strong, all indications suggest
that production levels—and automotive supplier profits—will be at a high pace
during 2013 for North America," said Schuster
About J.D. Power and Associates
Headquartered in Westlake Village, Calif., J.D. Power and Associates is a
global marketing information services company providing forecasting,
performance improvement, social media and customer satisfaction insights and
solutions. The company's quality and satisfaction measurements are based on
responses from millions of consumers annually. For more information on car
reviews and ratings, car insurance, health insurance, cell phone ratings, and
more, please visit JDPower.com. J.D. Power and Associates is a business unit
of The McGraw-Hill Companies.
About The McGraw-Hill Companies
The McGraw-Hill Companies (NYSE: MHP), a financial intelligence and education
company, signed an agreement to sell its McGraw-Hill Education business to
investment funds affiliated with Apollo Global Management, LLC in November
2012. Following the sale closing, expected in early 2013, the Company will be
renamed McGraw Hill Financial (subject to shareholder approval) and will be a
powerhouse in benchmarks, content and analytics for the global capital and
commodity markets. The Company's leading brands will include: Standard &
Poor's, S&P Capital IQ, S&P Dow Jones Indices, Platts, Crisil, J.D. Power and
Associates, McGraw-Hill Construction and Aviation Week. The Company will have
approximately 17,000 employees in more than 30 countries. Additional
information is available at www.mcgraw-hill.com.
About LMC Automotive
LMC Automotive, formerly J.D. Power Automotive Forecasting, is the premier
supplier of automotive forecasts and intelligence to an extensive client base
of automotive manufacturer, component supplier, logistics and distribution
companies, as well as financial and government institutions around the world.
LMC's global forecasting services encompass automotive sales, production and
powertrain expertise, as well as advisory capability. LMC Automotive has
offices in the United States, the UK, Germany, China and Thailand and is part
of the Oxford, UK-based LMC group, the global leader in economic and business
consultancy for the agribusiness sector. For more information please visit
Media Relations Contacts
John Tews; Troy, Mich.; (248) 680-6218; email@example.com
Emmie Littlejohn; LMC Automotive; Troy, Mich.; (248) 817-2100;
No advertising or other promotional use can be made of the information in this
release without the express prior written consent of J.D. Power and Associates
or LMC Automotive. www.jdpower.com/corporate www.lmc-auto.com
SOURCE J.D. Power and Associates; LMC Automotive
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