2002 Auto Sales Off to Solid Start, as Economy Recovers

MCLEAN, Va.--April 11, 2002--New car and light truck sales continue to roll along at a healthy pace, despite lingering economic and global uncertainty, boosting prospects that year-end sales will top the 16 million mark.

First-quarter 2002 sales fell only 4.5 percent from the same period in 2001 -- the second best year in auto retailing history. The surging popularity of crossover utility vehicles (CUVs) -- hybrids of sport-utility vehicles and traditional cars -- has been a driving force in the year's successful start. CUV sales notched gains of 16 percent over the first quarter of last year and 24 percent over March 2001's totals.

Positive signs in a gradually recovering economy bode well for new-car and light truck sales through the balance of 2002, according to National Automobile Dealers Association (NADA) Chief Economist Paul Taylor.

``With job creation starting to rise, the market is broadening for auto sales,'' said Taylor. ``In addition, concerns about disproportionate hikes in interest rates by the Federal Reserve are starting to fade - and that's good news for car shoppers and our industry.''

Steadily rising fuel prices, in part related to ongoing hostilities in the Middle East, may already be having an impact on consumer purchasing patterns. Taylor notes that consumers are increasingly attracted to fuel-efficient vehicles, as evidenced by the growing popularity of CUVs. Fuel-saving hybrid drivetrains with both an electric motor and gasoline engine are scheduled for future CUVs.

``Gasoline prices have already risen 23 percent, and may be up by 30 percent in the coming months,'' said Taylor. ``When fuel prices increased by 30 percent in 1997, more car buyers opted for four-cylinder vehicles. We are likely to see the same trend in coming months, and CUVs and hybrid drivetrain vehicles will become even more popular. New, more efficient V6 engines are also in demand.''

The National Automobile Dealers Association represents more than 19,500 franchised new car and truck dealers holding nearly 40,000 separate franchises, domestic and import.