Increased Demand for New Autos Yields New Business Opportunity

Source: AutoData Corp.
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The government's "cash for clunkers" program proved more successful than initially thought, so another $2 billion has been allocated. Once this program ends, the monthly data will trend back to about 10 million units (SAAR) per month, but the bottom of the cycle is now in the rear view mirror. The overall trend will be gradually upward in 2010 and beyond. Auto sales will be constrained in the near-term by slow income growth for consumers, but hiring activity and wage gains will start to accelerate by the second half of next year. This will spur increased demand for new auto.
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