Optimism at New York Show Bodes Well for Global Auto Show Circuit

David Sargent

The global automotive spotlight was shining brightly on the dozens of new model debuts and more than 1,000 vehicles on display earlier this month at the New York International Auto Show. While some of the vehicles shown in New York had already debuted at previous shows in Los Angeles, Detroit or Geneva, Switzerland, many were seen for the first time by the public.

There was an overall buzz at the Javits Center in New York City about the auto industry rebounding to sales levels last seen before the financial crisis of 2008. J.D. Power’s forecasting alliance partner LMC Automotive expects global light-vehicle sales to increase to 79.2 million in 2012, a 5% increase from 2011. All major regions are expected to post stronger sales in 2012, compared with 2011.

Japan is expected to see strong growth with sales of 4.8 million, up 16% from 2011. Sales in India are expected to reach 3.2 million in 2012, up 11% from 2011, while China’s sales are expected to increase 9% to 19.7 million. Brazil’s sales are expected to grow 1% in 2012 to 3.5 million. In addition, LMC Automotive expects 14.1 million new light vehicles to be sold in the U.S. this year. Continue reading ›

Automakers, Suppliers Assess Operations after Japan’s Tragic Events

Jeff Schuster

The situation in Japan, including the changing conditions of the Fukushima Daiichi nuclear plant’s reactors and power issues from rolling blackouts, remains extremely fluid as it relates to the auto industry. Both manufacturers and automotive suppliers alike continue to assess their specific situations, but it is clear that it will likely be months before the industry returns to normal operations.

We are beginning to see the impact reach beyond Japan, and the auto industry is bracing for both parts and vehicle shortages in many areas of the world. There is a great deal of risk for automakers in the near-term, as it relates to vehicle production volume and, ultimately, sales. In our forecast, we have made an initial downward revision for vehicle production in Japan—of 450,000 units, which is equal to a reduction of 5% for 2011. Continue reading ›