J.D. Power and Associates Reports: February New-Vehicle Retail Sales Projected to Increase Slightly From February 2009

WESTLAKE VILLAGE, Calif., Feb. 25 /PRNewswire/ -- February new-vehicle retail sales are expected to increase marginally compared with February 2009, according to J.D. Power and Associates, which gathers real-time transaction data from more than 8,900 franchisees across the United States.

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February new-vehicle retail sales are expected to come in at 561,500 units, which represents a seasonally adjusted annualized rate (SAAR) of 8 million units, compared with 7.9 million units in February 2009. Fleet sales continue to rebound from the lower levels experienced one year ago. As a result, total sales for February 2010 are projected to come in at 741,500 units, up 8 percent from February 2009.

"While February sales have improved from a year ago, the pace of the recovery has hit a speed bump, with this month's SAAR down from January's selling rate," said Jeff Schuster, executive director of global forecasting at J.D. Power and Associates. "This hiccup appears to be the result of consumers waiting out the Toyota recalls and winter storms impacting showroom traffic, but the effects of these external factors are likely temporary and the recovery is expected to get back on track."

    
    
    
    J.D. Power and Associates U.S. Sales and SAAR Comparisons – February 2010
    -------------------------------------------------------------------------
                        February 2010(1)     January 2010    February 2009
                        ---------------      ------------    -------------
    New-vehicle retail 
     sales              561,500 units       514,633 units    556,689 units
                       (1% higher than 
                        February 2009)
    Total vehicle
     sales              741,500 units       697,368 units    688,244 units
                       (8% higher than 
                        February 2009)
                                             
    Retail SAAR       8.0 million units   8.1 million units  7.9 million units
                                             
    Total SAAR        9.9 million units  10.7 million units  9.1 million units
    
    
    (1) Figures cited for February 2010 are forecasted numbers based on the 
        first 17 selling days of the month.
    

Given stronger-than-expected economic growth in the fourth quarter of 2009 and improved financing and leasing conditions, J.D. Power and Associates is increasing its 2010 forecast to 11.7 million units (from 11.5 million units) for total sales and to 9.6 million units (from 9.5 million units) for retail sales, despite February's expected performance.

At the beginning of February, vehicle inventory was at a 71-day supply, compared with 121 days in February 2009. For the first quarter of 2010, production remains on track to increase by more than 1 million units from the same period one year ago. Production volume for 2010 overall is expected to increase by 24 percent to 10.6 million from 8.5 million in 2009.

"Although inventory levels have improved from a year ago, they have increased from levels during the past four months—creating a risk of inflated inventory levels in the short term, given the slower sales pace in February," said Schuster. "In addition, the recovery in production levels is more pronounced than the recovery in demand after the extensive production cuts in 2009, adding concern of further inventory troubles throughout the year."

About J.D. Power and Associates

Headquartered in Westlake Village, Calif., J.D. Power and Associates is a global marketing information services company operating in key business sectors including market research, forecasting, performance improvement, Web intelligence and customer satisfaction.  The company's quality and satisfaction measurements are based on responses from millions of consumers annually.  For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. J.D. Power and Associates is a business unit of The McGraw-Hill Companies.

About The McGraw-Hill Companies

Founded in 1888, The McGraw-Hill Companies (NYSE: MHP) is a leading global information services provider meeting worldwide needs in the financial services, education and business information markets through leading brands such as Standard & Poor's, McGraw-Hill Education, Platts, Capital IQ, J.D. Power and Associates, McGraw-Hill Construction and Aviation Week. The Corporation has more than 280 offices in 40 countries. Sales in 2008 were $6.4 billion. Additional information is available at www.mcgraw-hill.com.

J.D. Power and Associates Media Relations Contacts:

Angela Bianchi; Troy, Mich.; (248) 312-4729; [email protected]

Syvetril Perryman; Westlake Village, Calif.; (805) 418-8103; [email protected]

No advertising or other promotional use can be made of the information in this release without the express prior written consent of J.D. Power and Associates. www.jdpower.com/corporate

SOURCE J.D. Power and Associates