Demand Drives Auto Market
Pent-up demand for cars is driving the auto sector recovery, even though the overall economy is flat. Auto execs feel the sales recovery -- which has amounted to about 10% to 11% year on year -- is sustainable. Consumers' need for new vehicles has overpowered many other forces arrayed in the opposite direction, including still-higher gasoline prices, persistent U.S. joblessness, moribund consumer confidence, and anxiety in advance of the November elections. During the second quarter, Kantar Media said, automotive ad spending in the U.S. rose by nearly 8%.