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Rebecca Lindland, IHS director of Automotive Research, on why she is predicting solid auto sales for June.
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There but our next guest isn't she's in her sales forecast for 2012 joining us now Rebecca -- -- I -- says automotive director of research.
You are brave woman Rebecca how we get -- -- family well bid down unemployment is any -- -- percent more people on the unemployment line.
And you say no there's still gonna buy cars.
They are tricks to yeah.
And acquire -- that -- certainly our forecast but it comes from a really strong and sound.
Economic forecast out of IHS global inside our our.
Our sister company.
That I HS and really -- we luck there's actually some positive news out there the economy is still growing.
It's not growing very facts but it is still growing.
There's some uptick in how is saying it'd there's some credit availability is coming back.
So there's positives.
And again it's not about increasing IDs -- in the forecast is just that.
We're comfortable at that fourteen point three million unit mark.
In light vehicle sales -- may sales were down a little bit more isn't replacement factor though to that so many people for so long them and sit in on their old.
Beat up cars are saying if it's time.
Absolutely we actually have the highest average age at a ten point eight years that we've ever had for the average age of the car on the road today.
And you know and -- -- sort of basis is Italy take the car into the mechanic and he says.
Looking got to do 15100 dollar break Jabber 2000 dollar transmission has something -- at at at some point time.
You say you know what that -- I'm just gonna replace the car.
A difference now is that credits available leasing is available you have options now whereas a couple of years ago you just kind of had said.
-- -- Fourteen point three million units sold for 201214.
Point eight million units for 2013 you did bring that down a little bit how come.
We -- that by about a 100000 units and that is for some the fact that the economy just isn't growing as fast as we would like it to grow.
So we've lowered GDP to just over 2%.
So again it's were not.
We're and I can -- the economy's not contracting that is still growing.
And we have so much pent up demand out there let's talk about the auto dealers and there exposure to Europe who it who do you worry about the most.
Well you have to be -- really have to worry about GM and for our.
They GM situation with the Opel brand in Germany.
Is a big problem they have a very similar profile to what GM had in the US in 2008.
Before restructuring.
There's a lot of overcapacity it is a lack of demand in -- for all they reason that even talking about today.
So we look at at their situation.
-- it has some issues as well but -- exposure is not quite as high.
It's good seven of course they all have these exchange rate fluctuations where they cannot predict of their profits so that makes it even more -- Rebecca Lynn -- up I HS automotive thank you for your insight and your optimism.
Thanks -- and got out of here today that.
