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Please direct all media inquiries to J.D. Power and Associates Corporate Communications Department:


J.D. Power and Associates
Corporate Communications
2625 Townsgate Road
Westlake Village, CA 91361
Toll Free: (800) 274-5372
Phone: (805) 418-8000
Fax: (805) 418-8900
media.relations@jdpa.com


John Tews
Director, Media Relations
Troy, MI
(248) 680-6200


Syvetril Perryman
Media Relations Supervisor
Westlake Village, CA
(805) 418-8103


Andrew Teachout
Media Relations Specialist
Troy, MI
(248) 680-6200

 

Press Release
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Contact:
John Tews
(248) 312-4119
Angela Bianchi
(248) 312-4729
 

J.D. Power and Associates Reports:
Retail Demand Propels Strong New-Vehicle Sales in November

WESTLAKE VILLAGE, Calif.: 18 November 2010 — New-vehicle retail sales remain strong in November and continue to provide the muscle behind the market’s strength for a third straight month, according to J.D. Power and Associates, which gathers real-time transaction data from more than 8,900 retail franchisees throughout the United States.

Retail Light-Vehicle Sales
November new-vehicle retail sales are expected to come in at 699,700 units, which represents a seasonally adjusted annualized rate (SAAR) of 10.0 million units—the second straight month with a selling rate above 10 million units. Retail transactions are the most accurate measurement of true underlying consumer demand for new vehicles.

“Another strong month in retail sales signifies a return of natural demand in the market,” said Jeff Schuster, executive director of global forecasting at J.D. Power and Associates. “With the mid-term election behind us and the economy indicating stability, if not mild acceleration, consumers are returning to showrooms even without an increase in incentive levels. Currently, total incentives are down 5 percent from October.”

U.S. Retail SAAR from November 2009 to November 2010
(in millions of units)

Total Light-Vehicle Sales
Total light-vehicle sales for November are expected to come in at 867,700 units, 12 percent higher than November 2009. Fleet sales in November are expected to remain below 20 percent of total sales, with volume up less than 1 percent from one year ago. Fleet share at this level is consistent with the continued discipline in the industry and focus on the retail side of the market.

J.D. Power and Associates U.S. Sales and SAAR Comparisons

 

November 20101

October 2010

November 2009

New-vehicle retail sales

699,700 units
(15% higher than November 2009)2

776,839 units

585,135 units

Total vehicle sales

867,700 units
(12% higher than November 2009)

947,773 units

745,284 units

Retail SAAR

10.0 million units

10.5 million units

8.4 million units

Total SAAR

12.2 million units

12.2 million units

10.9 million units

1Figures cited for November 2010 are forecasted based on the first 11 selling days of the month.
2The percentage change is adjusted based on the number of selling days (24 days vs. 23 days one year ago).

Sales Outlook
Strength in November is a positive sign, as the automotive market is expected to close out 2010 with a small rally. As a result, J.D. Power and Associates is maintaining its 2010 forecast of 9.1 million units for retail sales and 11.5 million units for total sales.

Even with a strong close to 2010, there remains a moderate level of risk with automotive sales in 2011. Therefore, J.D. Power’s forecast for the year has been adjusted downward to 10.4 million units for retail sales (from 10.5 million units) and 12.8 million units for total sales (from 12.9 million units).

“It is unclear how cautious consumers will be in 2011, as unemployment is expected to remain above 9 percent and the drag on the economy from the housing market continues,” said Schuster. “While the forecast for 2011 has been reduced slightly, there are signs that consumer optimism is growing, leaving room for upward momentum.”

North American Production
North American production is on target to end 2010 at 11.8 million units, which is up 38 percent from 8.5 million units in 2009. Volume in the fourth quarter of 2010 is expected to be 2.9 million units, compared with 2.7 million units in 2009.

Vehicle inventory at the end of October rose by 7 percent from September to a 67-day supply—the highest level since February 2010. However, days’ supply is still only 4 days higher than the inventory level at the end of October 2009 (63 days).

“The increase in vehicle production outpaced the increase in demand, but this pattern is consistent with the buildup of new model year vehicles coming off a summer selldown,” said Schuster. “With November’s expected performance, concerns of an inventory glut decrease, but levels will need to be monitored closely as the year balances out.”

North American production is expected to grow by 7 percent in 2011 to 12.6 million units.

About J.D. Power and Associates
Headquartered in Westlake Village, Calif., J.D. Power and Associates is a global marketing information services company operating in key business sectors including market research, forecasting, performance improvement, Web intelligence and customer satisfaction. The company’s quality and satisfaction measurements are based on responses from millions of consumers annually. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. J.D. Power and Associates is a business unit of The McGraw-Hill Companies.

About The McGraw-Hill Companies
Founded in 1888, The McGraw-Hill Companies (NYSE: MHP) is a global information and education company providing knowledge, insights and analysis in the financial, education and business information sectors through leading brands including Standard & Poor’s, McGraw-Hill Education, Platts, and J.D. Power and Associates. The Corporation has more than 280 offices in 40 countries. Sales in 2009 were $5.95 billion. Additional information is available at http://www.mcgraw-hill.com/.

 

Media Relations Contacts:

John Tews
J.D. Power and Associates
Director, Media Relations
5435 Corporate Drive, Suite 300
Troy , MI 48098
USA
(248) 312-4119
john.tews@jdpa.com

Angela Bianchi
J.D. Power and Associates
Media Relations
5435 Corporate Drive, Suite 300
Troy , MI 48098
USA
(248) 312-4729
angela_bianchi@jdpa.com

 

No advertising or other promotional use can be made of the information in this release without the express prior written consent of J.D. Power and Associates. www.jdpower.com/corporate

 

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November 2010 Automotive Forecasting Update

Jeff Schuster, executive director of global forecasting, discusses the total new-vehicle selling rate for November 2010, which includes retail light-vehicles sales, total light-vehicle sales, North American production, and a sales outlook for 2010. J.D. Power and Associates gathers real-time transaction data from more than 8,900 retail franchisees throughout the United States.

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