The auto news is not bad everywhere, in Germany auto sales rose 20% in April, compared to April 2007. In Germany their economy is on the upswing after a prolonged slump. Their economy is buoyed by 27 straight months of decreasing unemployment. Additionally, Germans are excited by the assortment of low carbon emission vehicles available from VW, BMW and Mercedes-Benz.
For the US this might be a promising sign. Right now there are some economic signs that indicate that things might be getting better. If these signs continue and if US consumers can safely enter the fall and winter months with fearing $200 plus prices for a barrel of oil, there is a chance for the auto industry to bounce back in the 3rd and 4th quarters. If this happens, I would anticipate a US auto serge that mirrors Germany. When US consumers come back into the market I expect them to buy fuel efficient vehicles.
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