A leading automotive authority predicted on Thursday (27th August) that monthly auto sales in the US increased by almost a fifth in August.

Edmunds.com revealed that it expects new vehicle sales to be 18 per cent higher than in July 2009, although the figure of 1.17 million units would still be a six per cent decline on August 2008.

Furthermore, the group's analysts indicated that the August seasonally-adjusted annualised rate (SAAR) could be just over 13 million, which would be the highest so far this year.

The improved performance is being attributed to the government's 'Cash for Clunkers' scheme, although Edmunds.com also links the initiative to some unprecedented sales volatility.

"Cash for Clunkers sent the sales rate on a wild roller coaster ride," said Senior Analyst Jessica Caldwell.

"The SAAR surpassed 19 million in late July, bounced around in the 15 million range early in August and has fallen to around eight million currently. Ending August on such a low note does not bode well for September."

In terms of individual companies, the new incentives were particularly beneficial for Hyundai and Ford, which saw adjusted year-on-year sales increase by 69 per cent and 26 per cent respectively.

However, cash-strapped General Motors and Chrysler saw their sales volumes plummet by an adjusted 25 per cent and 19 per cent, with Nissan suffering a 15 per cent slump.

Edmunds.com is based in Santa Monica, California and was launched in 1995.

Source:

Edmunds.com Forecasts August Auto Sales: Predicts Year's Highest SAAR, Notes Unprecedented Sales Volatility (27/08/09)

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