Autonation CEO claims Auto Industry will recover this year
Autonation CEO Mike Jackson believe the US auto market is on the right path. “The US auto industry is on the fast-track to recovery and will sell one million more vehicles this year than in 2009,” he said in a interview with CNBC.
He also attributed much of the recent momentum to the federal government enacting its bailout plans and restructuring. “Quite frankly without government intervention there would be no auto show this year. The American automobile industry would be shut down. The mood at the auto show a year ago was, ‘Will there be an auto show in 2010? He also applauded Ford CEO Alan Mulally, who has reinvigorated the brand with sleek new models and redesigns. Though according to him it still will be a difficult year, “we’re going to have a selling rate of 11.5 million units in the US vs. 10.5 (million) in ’09.”
He commented that the pickup truck segment might be the way for the big three to make up for lost ground, “Pickup trucks are going to recover from one million units today to over two million units in three years,” Jackson said. “It’s a housing play, it’s a recovery-in-America play. The replacement of pickup trucks is years behind as far as commercial demand. “To give up that segment and walk away from it because of government prodding would be a mistake.”