Thursday, May 26, 2016

New Auto Launches to Reach Record Pace

Automakers will sell a record 20 million new cars and trucks in 2018, and will introduce new vehicles at historically high rates through the end of the decade, according to a forecast in the annual Car Wars report released Wednesday.

John Murphy, senior auto analyst for Bank of America Merrill Lynch Global Research, told the Automotive Press Association on Wednesday in Detroit that the industry is still in the midst of a “very significant” upturn, and that demand — driven in part by low interest rates — will continue through 2020. As a result, automakers will drastically increase the pace at which they put out new cars and trucks from an average of 38 per year over the past few decades to 58 per year from 2017-20.

“Introductions are reaching unprecedented levels,” Murphy said. “(Automakers are) realizing more and more these product introductions are key. ... If you have new, good fresh product, you tend to gain market share.”...

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