WOODLAND HILLS, CA-November 29, 2012: Analysts with Great American Group, Inc. (OTCBB: GAMR) report that the automotive original equipment manufacturer (OEM) parts industry has performed well in the first three quarters of 2012 driven by the strength of the domestic auto market, which continues to outperform other sectors despite tumultuous conditions in the overall U.S. economy.
“As Americans begin to trust that the greater economy is making a true recovery, they are purchasing more new vehicles. This trend not only has a positive impact on upstream parts manufacturers, but also on many other sectors of the domestic economy.”
Preliminary estimates place October's sales of new automobiles between 10 and 15 percent above the same month in 2011, despite a chaotic end of month when the eastern seaboard was devastated by Hurricane Sandy, effectively eliminating auto sales for a large portion of the country for several days.
The sales levels indicate that consumers are breaking out of recessionary spending habits and growing more comfortable with committing to large purchases that may have been delayed for several years, according to Ken Bloore, COO of Great American Group's Advisory & Valuation Services Division.
"The domestic automotive market has proven to be far more resilient than many would have expected, given its highly unstable condition a few short years ago," Bloore said. "As Americans begin to trust that the greater economy is making a true recovery, they are purchasing more new vehicles. This trend not only has a positive impact on upstream parts manufacturers, but also on many other sectors of the domestic economy."
In its latest Automotive Monitor, Great American Group also notes that the domestic recovery in the automotive market is not necessarily indicative of a global resurgence. The automotive industry in Europe has fallen on hard times, with many experts estimating that unit sales of new cars will fall to levels not seen since the late 1980s or early 1990s. The decline is rooted in the ongoing and widespread economic difficulties and debt crisis that are ravaging many Western European countries.