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-- -- always Bogans stick with a copy my next guest says despite those strong sales.
That -- concerns about how long the trend can last joining me now Rebecca -- -- Director of automotive research at IE HS Rebecca thank you so much for being here and -- Jeff's point there was some great numbers in here Ford GM and Chrysler -- posting strong gains in sales.
For the month of January.
So strong that surprised you perhaps it's just a little bit about our expectation what's her what's her fifteen point two million unit selling right yup we're looking about fifteen point 315 point five.
-- to Jeff's point also he says look.
People buying trucks because they're expanding their business yes it's a good sign for the overall economy would you agree yes we actually has some really interesting data with and I fast now which also has a big energy sector -- actually seeing large sales of pickup tracks.
In areas where they're investigating -- -- natural gas he -- male pilot -- thousand pick -- trucks.
For all the new employees coming and so we'll see -- randomly in north and South Dakota and parts of Pennsylvania -- We're seeing a change in distribution pattern a pickup truck sales.
But it's great to see them because they really have profitability it's amazing how -- industry's come since as is being in the dump her essentially back in 2010.
Yes I mean how far -- -- -- it's amazing -- being in Mexico City at the beginning of 2010 and -- -- forecasting like ten million units and I just thought that just seems impossible and that we did -- global -- Exactly because we weren't had been in 1617.
Million -- you know -- GM actually released a note today stating that.
The January sales for the entire industry was about 50%.
This January than in January 20 -- so what concerns you a battle but this is it just not sustainable is that what you fear.
It's just more -- be the idea that payroll tax and people starting to get those slightly smaller paychecks.
Really hitting that middle class.
By -- That's what we're concerned about sell many people will buy a car this sort it.
-- is out there buying level their darling level in about 90% of all cars are financed anyway.
So when you take away some of their take home pay.
You are taking -- purchasing power.
Jeff mentioned that says -- to some of these incentives were scaled back last month which ironically had no -- -- impact it seems on sales but do you expect.
Perhaps those incentives to come back stronger as we go into the through into the year.
I think -- Pretty disciplined -- the reasons that we used to have so many incentives was because the factories just had to run.
Yeah it was less CEO is less costly to keep them running so we had to produce vehicles and nobody really wants it.
Now we can control production.
And we can moderate production to meet demand so that's why we don't have to slather on as incentives and you know I -- One other thing when we talk about the housing industry we see housing turning -- but we still know that lending and financing getting a mortgage is pretty tough for the Stein it's -- gone up.
How is bank -- with regard to financing -- Car yes licensing having just bought a house myself puff up its inexplicably people go out and buy another car yet compete at the Atlanta I've never felt -- -- -- there is a very close correlation between new home sales.
And and new car buying and of course when we look at new home sales.
There's section ripple effect throughout the economy people go to Home Depot he spent thousands of dollars in Home Depot and all of these different things so.
As housing recovers we're hoping to see year recovery.
In light vehicle sales -- it's easier to finance a vehicle these days and by Angel very easy it is easy to check eighties it's much -- here.
And actually I'll call auto credit quality is very very high so -- planning deals -- Africans.
Very good Rebecca Lynn land with the -- excess director of automotive research on a day when.
The news is good for the -- like to thank you so much alike appreciate it thank you seem said.
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