U.S. Auto Sales May Slow Through 2016

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    U.S. Auto Sales May Slow Through 2016, AlixPartners Says - Bloomberg

    There are 5 million fewer potential auto buyers in the U.S. compared with 2007, as employment recovers at a slower rate than after other recessions since World War II, the report said. AlixPartners’s findings follow moves by the Federal Reserve this month to cut estimates for 2012 growth and extend a program to keep long-term interest rates low in a bid to prevent expansion from stalling and reduce unemployment which stands at 8.2 percent.

    “If people don’t have jobs, they don’t buy cars,” John Hoffecker, a managing director and head of AlixPartners’s automotive practice, said in a statement alongside the company’s report. Companies should make “aggressive, well-informed investments in product -- all the while recognizing that they’re unlikely to get a whole lot of help from the economy.”

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