Summary
While we are seeing the annual sales rate of vehicles in the U.S. approach 10M, this is not a sign that the industry has turned around. The dealers of TARP-subsidized manufacturers have been selling off excess inventory at a loss as credit rules and floorplans change. Until inventory levels-off and plants come back online, we will not see the positive effects in employment in the auto industry. Until employment picks up, consumer spending can't happen. I am positive about the housing market showing a little progress. This will help revive the auto industry. I see positive gains for Hyundai and Kia as they are making quality products and are working creativly with the buyers. I also believe the fleet leasing and rental companies will soon have no choice but to start placing large orders as their existing fleets age.
Analysis
Hyundai will continue to grow. With domestically-produced quality products, and creative financial efforts for the consumer, Hyundai will be a true competitor for Toyota, Mazda, Nissan, Mitsubishi and Kia. They will do well if the "Cash-for-Clunkers" bill passes.
I expect fuel prices to rise creating even better reasons to avoid the large, luxury products. Consumers report that Lexus has become boring, and they truly want something "different" Infiniti, BMW, Mercedes-Benz, Jaguar and Land Rover will be the benefactors.
