US car industry set for bumper July 2nd August 2005
The US car industry is set for a positive month, with analysts tipping the "Big Three" automotive firms to register strong results in July.
A report from analysts at Credit Suisse First Boston (CSFB) suggests that the month could be a "blow-out month for US car sales".
CSFB says that it is anticipating an annual sales rate of between 18.7 million and 19.0 million units – a marked increase on the figures for June, which stood at 17.5 million and also from the same month in the previous year when unit sales reached 17.2 million.
With concessions programmes being initiated for employees at General Motors, Ford and DaimlerChrysler – the so-called Big Three - the consultants are predicting an upturn in fortunes.
However, while these moves are expected to kick-start the market, CSFB warned that there would be an "inevitable" shift backwards when the price cuts and employee incentives finish.
"This highlights how much incentives have been raised to pay for these sales," CSFB told Forbes.
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