J.D. Power and Associates today is quantifying in their estimation the impact on auto sales this year due to the clunker program and the extent that it steals sales from 2010. They said that based on data seen thus far, August will see the first 1mm+ unit sales (includes fleet sales) month since last year. “This marks the first increase in retail sales (not including fleet) volume since June 2007.” They raised their 2009 retail sales estimate by 300,000 vehicles to 8.6mm units but cut their 2010 retail sales estimate by 100,000 to 9.5mm “in light of the expected pull-ahead sales as a result of the CARS program and a flatter than anticipated recovery.” This steroid shot into the economy is about to end and as with any drug, after the hangover, when it wears off you feel like you did before and thus there is nothing sustainable to it.
Read this next.
Previous PostAIG Unlikely to Payback Bailout $ This Century