Investing and Global Finance News

Auto Industry Benefiting from Continuing Economic Recovery

The continuing improvement in the performance of the US economy in recent months has fueled a significant rise in auto sales. As confidence improves consumers feel better equipped to make new car purchases.  There is also a larger than usual number of people replacing old cars due to the fact that they held off making a new car purchase during the bad years of the economic crisis.

Overall car purchases rose by almost16% over the same time last year, during the month of February, while the annual sales rate reached its highest level in four years. According to automotive industry reports there were 1,149,396 cars and light trucks sold during February. Annualized that rate means 15.1 million cars sold in one year.

Individual companies in some cases did even better than the average rate. Chrysler’s February increase in sales was about 40% better over the same time last year. Volkswagen AG went up by 42.5% and Kia had improved sales by 37.3%.

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