A calendar quirk works in the favor of automobile sales for August as the Labor Day weekend marks the 5th weekend of the month. The timing effect could be enough to lift the annual selling rate to over 16M units, according to forecasts from LMC Automotive and J.D. Power. Kelley Blue Book is a tad more conservative with an estimate of 15.6M.
Though an aging U.S. fleet and macroeconomic factors are often cited as the major demand boosts for the industry, analysts think a higher percentage of loans over five years has helped ease pricing.
It's not just the U.S. that is showing stronger automobile industry fundamentals. China continues to blaze ahead, while Europe and India are expected to start a slow recovery.
Light-duty diesel vehicles and EVs catch their share of headlines, but it's new gas models from Detroit and Tokyo automakers which could spark sales.