After the sales of cars and trucks in the U.S. hit a record of around 17.47 million in 2015, the industry had high expectations when 2016 started, only to be hit hard by the “auto sales have peaked” theory. The assumption behind that theory was that, since we were above the 17 million vehicles in a year mark, there wasn’t enough room to go above it; and since auto sales are generally cyclical in nature, we should brace ourselves for the downturn.
As a result, auto company stocks were hammered during the early part of 2016, and then they started moving sideways, but the doomsday scenario never materialized, and we finished 2016 with a record 17.55 million vehicles sold. Now we have to move the “auto sales have peaked” theory to 2017. Continue Reading »