GM Chief Economist: Recovery is “Here to Stay”

GM Chief Economist: Recovery is “Here to Stay”

GM’s August sales were the best they’ve been in the better part of a decade and this strong showroom performance seems to indicate an economic recovery is in fact underway.

The company delivered nearly 276,000 vehicles in the U.S. last month and as a result all of its four brands – Cadillac, Buick, GMC and Chevrolet – saw double-digit sales increases.

“The economy is on a solid footing” said Kurt McNeil, vice president of GM’s U.S. sales operations.

Two possible reasons for those gains in the market include a firm financial situation for buyers and an aged vehicle fleet. Increased consumer spending and the need to replace worn-out cars and truck are driving sales.

Mustafa Mohatarem, General Motors chief economist said today’s economic recovery is like others in the past, noting that “they do follow a trend.”

SEE ALSO: GM’s August Sales Best Since September 2008

Mohatarem also pointed out that GM’s sales are slightly ahead of projections they made earlier in the year. Additionally their estimates pegged the SAAR, which is shorthand for Seasonally Adjusted Annual Rate at around 15.5 million units. This is a fancy guess as to all the vehicles automakers will sell in the U.S. this year.

However, today they expect that figure to top 16 million, a sizeable increase and a strong indicator the economy is getting back on track. Mohatarem said the recovery is “here to stay,” which is good news for everyone.

Additionally he expects the industry to remain fairly steady, built on an increasingly solid financial footing. Mohatarem also said “we’ve got a lot of room to grow,” as the population increases and more drivers hit the road. Hopefully things keep looking up for the automotive industry going forward.

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