Revived consumer spending, improvements in credit availability, the shift to green vehicles, and an aging vehicle fleet will drive growth in the upcoming years.
The average age of the U.S. light vehicle fleet is at a record high of 11.4 years, which, coupled with rising consumer confidence, should result in growth for both original equipment manufacturers (OEM) and auto parts suppliers.
Automakers and their suppliers continue to see the shift in demand for fuel-efficient vehicles, as consumers remain sensitive to gas prices.
An improving housing sector and better mileage are driving truck demand. Domestic manufacturers are benefitting as their product mix is more dependent on higher margin truck sales.
The average age of the U.S. light vehicle fleet is at a record high of 11.4 years, which, coupled with rising consumer confidence, should result in growth for both original equipment manufacturers (OEM) and auto parts suppliers.
Automakers and their suppliers continue to see the shift in demand for fuel-efficient vehicles, as consumers remain sensitive to gas prices.
An improving housing sector and better mileage are driving truck demand. Domestic manufacturers are benefitting as their product mix is more dependent on higher margin truck sales.
