Analysts Cautious Over US Car Sales

Car industry analysts have reacted cautiously to news that November sales in the USA were ahead of predictions. Continuing high incentives to buy is helping sales volumes, but keeping profits down, leading to a situation dubbed “profitless prosperity” by one analyst. Even more ironic is the fact that it is the Big 3 of Ford, GM and Chrysler that are offering the greatest incentives, yet all three experienced double-digit sales falls last month and their market share is down 3 per cent to 61 per cent, with shares of imported vehicles rising.