This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Auto Sales Seen Rising 12% This Month, 12% for 2012

Stocks in this article: F

DETROIT -- ( TheStreet) -- The strong pace of U.S. auto industry sales this year is continuing this month, with November light-vehicle sales likely to show a 12% increase.

Experts said Hurricane Sandy reduced October sales, pushing some demand into later months, and also created a need for replacement vehicles.

"Sales have strengthened each week in November, which bodes well for a strong finish to the month and the year," said J.D Power analyst John Humphrey, in a prepared statement. "We expect healthy sales in December, as the industry continues to recover from Sandy and leads into its year-end sales events."

LMC Automotive, an affiliate of J.D. Power, forecast November volume of 1.1 vehicles, with retail sales accounting for 83%. November is expected to reflect the highest retail selling rate since January 2008. Retail transactions are considered the most accurate measurement of consumer demand for new vehicles, with the remaining sales to fleet customers influenced by various factors.

LMC Automotive projected full-year 2012 light vehicle sales of 14.4 million. During its third-quarter earnings call, Ford (F) also projected 2012 light-vehicle sales of 14.4 million. also said it expects full-year light-vehicle sales of 14.4 million. U.S. light-vehicle sales totaled 12.8 million in 2011, up from 11.6 million in 2010. LMC projected 2013 sales of 15 million.

"The irrepressible need and willingness of consumers to replace aging vehicles is stronger than the effects of natural disasters and fiscal turmoil both here and abroad," said LMC Automotive analyst Jeff Schuster, in a prepared statement. "A sustained recovery pace in auto sales is expected over the next six months, barring any fiscal cliff hangover, but the medium-term forecast is still dependent on more pronounced economic activity and growth."

On a recent conference call with reporters, economist Lacey Plache said that Hurricane Sandy resulted in lost sales of about 30,000 units in October. This month, she said, first-half sales in the Northeast were slower than expected, but a second-half pickup is expected. "By December, most of the delayed sales will have come back, plus sizable replacement sales come in" she said. "Insurance money starts coming in by then."

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs